Based on abundant data of oil test, logging, borehole log and experimental results, the forming conditions of shale oil and gas in Jiyang depression were investigated. Three sets of continental shale at the formations of Paleogene Upper Es4 , Lower Es3 and Es1 were concluded. They respectively have the material foundation and reservoir conditions for shale oil and gas because of their wide distribution, great thickness and high abundance, favorable types (mainly with type I-II1 ) and medium to high mature stages of organic matter, as well as their high content of inorganic brittle minerals (high carbonate content and a certain amount of quartz in general), development of the network of various micro-pores and micro-fractures which provides a space for the storage and flow of oil and gas. Specifically, the Upper Es4 shale oil and gas mainly exists in Dongying sag, Zhanhua sag and Guojuzi sub-sag of Chezhen sag; the Lower Es3 shale oil and gas mainly in the sub-sags忆central regions of sags; and Es1 shale oil and gas mainly in the central parts of Zhanhua ssag and Chezhen sag.