Recent studies dispute the long-standing belief that highly organic-rich shales are predominantly linked to condensed section (CS) at the maximum flooding surface (MFS), proposing instead that they more commonly develop in shallow waters along basin margins. This hypothesis, however, has not been thoroughly investigated. Our study, focusing on the pivotal regions of the Longmaxi Formation and the Chang 7 Member for marine and continental shale exploration in China, integrates sequence stratigraphy with analyses of total organic carbon (TOC) and elemental geochemistry to pinpoint the environments conducive to the formation of organic-rich shales. The most organic-rich intervals, specifically the bottom of the Longmaxi Formation and the mid-to-lower Chang 73 sub-member, are located within the transgressive systems tract (TST), showing higher TOC levels in the middle to lower TST, compared to the CS of the MFS. The formation of high organic matter shale is related to warm, humid, and dysoxic shallow waters with minimal terrigenous influx and high primary productivity. We found a pronounced inverse relationship between organic matter concentration and water depth, with deeper waters promoting the decomposition and recycling of organic matter during sedimentation, thereby diminishing the TOC content. Moreover, volcanic activity also affected the organic enrichment in the Chang 7 Member. With high primary productivity, organic matter tends to accumulate in dysoxic slope zones. Consequently, high-organic content shale intervals are generally situated in shallow, dysoxic water environments, suggesting that the CS of the MFS may actually represent organic-poor intervals with limited source rock potential. The results of this study are of great significance for shale oil and gas exploration in China, and provide a new direction for the discovery of shale oil and gas sweet spots.
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