Due to the low maturity of exploration and study of the Wuqing Sag in Jizhong Depression of Huabei Oilfield Company， no important exploration breakthroughs  have been obtained for years. This study focuses on the lithofacies palaeogeography setting， organic geochemistry characters， depositional characters， petroleum reservoir forming conditions， tectonic features and resource assessment and investigates the great exploration potential for shallow biogas in the Wuqing Sag based on the gas production from the Neogene Guantao Formation in Well Wu 2. The Neogene in the Wuqing Sag is dominated by shore shallow lacustrine and fluvial deposits with great thickness and dark color mudstones were widely developed which provided favorable conditions for formation of shallow biogas. The natural gas was mainly generated in the Neogene with good organic geochemistry indexes and great biogas resource potential calculated by basin simulation. The total gas production quantity is 856×108m3 and the gas resource quantity is (150～200)×10.8m3. The channel sandbody constitutes the favorable reservoirs of the Neogene Guantao Formation. It is easy for the biogas formation and preservation due to the quick subsidence， great thickness and deep burial of the Neogene. Biogas accumulated in the slumping anticlines which were induced by the tectonic inversion in the later period.