The oil shale of Changle sag exists in Lijiaya Formation of Wutu Group, corresponds to the stratum of 2nd Kongdian Formation in Jiyang depression and Weibei sag. By means of the organic geochemical theories and methods, the characteristics of oil shale in Changle sag are studied. The oil shale has a high organic matrix abundance. Its kerogen type is mainlytypeⅠand typeⅡ_1, at an immature-low maturity stage, has a strong potential for oil generation,so it has good prospects for oil and gas exploration. By analyses of the regional tectonic evolution and climate change, the oil shale of Changle sag are formated in left turn to right turn conversion period of Tanlu fault zone, weak tectonic activity coupled with warm and humid climate. The oil shale and coal co-exist in TST and HST. The oil shale metallogenic model belongs to the rift lake march type.