The sedimentation and erosion in the study area mostly have negative effects on hydrocarbon generation and accumulation. Firstly, in the process of sedimentation, deep lake facies did not occur. The playa and shallow lake deposits in the Kongdian and Shahejie formations provide the main source rocks, however, their low organic abundances make them poor source rocks. Secondly, coarse alluvial deposits in the marginal area of the depression are far away from source rocks and lack links with source rocks, so usually can not act as good reservoir rocks. Furthermore, the intensive uplift and erosion (up to 3000 m in thickness) at the end of the Palaeogene had severe negative effects on hydrocarbon accumulation. On one hand, it caused decline of temperature and pressure, and resulted in slowdown of hydrocarbon generation and expulsion from source rocks; on the other hand, it destroyed the earlly formed oilgas pools. The strong tectonic activities also resulted in difference in burial history. Three types of burial history have been identified, i.e. continuous subsiding type, early subsiding type and twice subsiding type. In the continuous subsiding region, the potential for hydrocarbon generation and expulsion is limited due to shallow burial depth, and only part of the third member of the Shahejie Formation (Es3) fall into oil window. In the early subsiding region, both the Kongdian Formation (Ek) and the Shahejie Formation fall into oil window, but preservation of the expulsed oil and gas is a problem. The regions underwent twice subsiding in burial history are the most prospective targets since source beds could maturate in each subsiding process.