Abstract: The theories and experiments of modern science, space detection and achievements of exploration and development practices have proved that the large-scale existence of oil is not premised on the existence of living matter. Petroleum originates from the deep strata 100 km below the earth surface and is synthetized from the pre-existing carbon and hydrogen elements. Under any conditions, the biological molecules belonging to the C-H-O system can not be transformed into the hydrocarbon molecules of the C-H system heavier than methane. Hydrocarbon is part of mantle hydrocarbon alkali fluid which will have an alkaline metasomatism with surrounding rocks during its going upward and will transform into petroleum hydrothermal fluid containing metal, non metal and rare earth elements at the critical temperature. The petroleum hydrothermal fluid differentiates in the upward channel and metal, nonmetal, rare earth and hydrocarbon reservoir are formed. The upward channels of hydrocarbon in the faulted basins are the small fault-throw strike-slip faults in basement, petroleum accumulates within the flower-like fracture systems controlled by the strike-slip faults and is distributed no more than 2 km from the flower-like fractures. The upward channels of hydrocarbon in the compressional basins are the thrust faults between obduction-type orogenic belts and the basins, and the hydrocarbon reservoirs are formed in the vicinity of the thrust faults. Chemical sedimentary formation and oil zones are formed after the differentiation of hydrocarbon hydrothermal fluid entering the faulted basins, and the oil zones will further convert into petroleum asphalt due to hydration and oxidation. Petroleum asphalt undergoing burial and pyrolysis will convert into coal seam. Hydrocarbon entering the bottom of oceans and tundras will change into natural gas hydrates under appropriate temperature and pressure. Oceanic hydrothermal vents, oceanic and terrestrial mud volcanoes are the windows of modern earth’s degassing. Basins and reservoirs are receiving the deep oil and gas supplies