Abstract: Based on the data analyses of rock pyrolysis, gas chromatographic mass spectrometry(GC-MS), organic geochemistry and X-ray diffraction on core samples from 9 wells, this paper discusses the geochemical characteristics and the favorable areas for shale oil exploration. GC-MS analysis of saturated hydrocarbon shows that the hydrocarbon is dominated by short-chain n-alkanes（nC9—nC19）with the predominance of ααα20RC27 steranes and relatively low content of oleanane. The organic matter is dominated by algae and plankton. Maturity has a little impact on Pr/Ph, which basically records the oxidation and deoxidation environment during deposition and early diagenesis stage. The relationship between dibenzothiophene/phenanthrene and pristane/phytane indicates that the sedimentary environment-lithofacies of Second White Specks formation vary largely from east to west. Strong reducing environment occurs in the east of Alberta, weak reducing environment in the middle-west and relatively strong reducing environment in the west. On the other hand, the pyrolysis products in the lab usually contain large amount of polar, high-molecular compounds, which results in the over-estimation of hydrocarbon potential obtained by mass balance model counting inert carbon. A new method of dead carbon correction is used to reconstruct the original organic carbon content and original hydrocarbon potential of matured-high matured source rocks in Second White Specks formation. The favorable areas for shale oil production are discussed, and it is concluded that the vitrinite reflectance of the source rocks is greater than 0.5 in 5 wells of the middle-western part of the study area and the residual oil in other wells can’t meet the commercial production requirement