Natural fractures in wells from oil-rich shale of the Upper Xiaganchaigou Formation in Qaidam Basin, the largest Cenozoic sedimentary basin in the Tibetan Plateau, vary systematically by stratigraphic position, allowing reconstruction of fracture generation processes during regional tectonic deformation. Compacted fractures, layer-bounded fractures, and low-angle (or bed-parallel) fractures were widely identified in oil-rich shale cores obtained from vertical wells. The layer-bounded fractures can be subdivided into two sets: one prevalent in light-colored (low gamma-ray) stiff layers and arrested by dark-colored (high gamma-ray) compliant layers, the other set primarily confined to the dark-colored compliant layers. The strikes of layer-bounded fractures, revealed by horizontal well FMI logs, are dominantly N60°-80°E and N10°-30°E within the light and dark intervals respectively. These strikes are consistent with natural hydraulic fracturing of the light layers during the Oligocene and the dark layers during the Middle Miocene-Holocene, based on a regional anticlockwise rotation of the compressional strain orientation. The abutment of layer-bounded fractures against low-angle (or bed-parallel) fractures in dark layers implies that the low-angle fractures were hydraulically fractured under a vertical least compressive stress during the Early Miocene, which produced the most intense tectonic compression. Layer-bounded fractures generally remain unmineralized in the dark layers but were mineralized in the light layers, suggesting that fractures confined in light layers would not decrease the sealing capacity of the shale oil system and fractures confined in dark layers can increase the pore space of shale oil storage. The Oligocene and Early Miocene fractures represented mechanical flaws that affected the initiation of Middle Miocene-Holocene fractures, implying that all natural fractures may alter hydraulic fracture stimulations to some extent.
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