Lacustrine oil shale is an important unconventional energy source in China. Previous exploration has mainly focused on stable deep lake deposits, whereas lacustrine oil shale layers in unstable sedimentary settings, which are widely distributed in Cretaceous strata, having received little research attention. The present paper is focused on the Aptian Jiufotang Formation in the Beipiao Basin. In order to study the impact of gravity flows and volcanism on oil shale formation, petrology, organic geochemistry, molecular geochemistry and elemental geochemistry were used to characterize the oil shales, which are very rich in well-preserved fossils (“Jehol Biota”). The predominant macerals in the high quality oil shales are lamalginite and telalginite, suggesting organic matter was derived mainly from phytoplankton and aquatic algal-bacterial organisms. A ternary diagram of C27-C28-C29 steranes showed increasing contribution of land plants in organic-lean units. Element indices such as Sr/Ba, Ca/(Ca + Fe), V/(V + Ni), δCe, Cu/Zn, Th/U, Sr/Cu, Fe/Mn, Ti/Al, TOC/S, as well as biomarker ratios (pristane/phytane, gammacerane index) and the index of compositional variability (ICV), show that high-quality oils shales were deposited under anoxic freshwater conditions. Terrigenous detrital input was low, and a warm and humid palaeoclimate, as well as a stable tectonic setting, likely prevailed. At times, low-density turbidites were accompanied by the input of terrestrial detritus, promoting a greater degree of lake oxygenation, thereby reducing oil shale potential. Volcanic eruptions triggered the occurrence of low-density turbidites due to emission of greenhouse gases which facilitated a drier climate. Periods of high-quality oil shale formation can therefore be linked to times of weak volcanism and tectonic activity, in which the organic matter was deposited under conditions of warm and humid paleoclimate, with enhanced preservation due to anoxic bottom waters in the lacustrine system. The organic-rich unit B within the Jiufotang Formation seems suitable for the application of in-situ oil shale conversion.
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