Shale oil and gas resources are abundant in the Chang 7 shale of the Yanchang Formation in Ordos Basin. To determine the characteristics and influencing factors of hydrocarbon generation evolution of the Chang 7 shale, a series of thermal simulation experiments were conducted on low‐maturity shale and kerogen samples. The results indicate that the maximum yield of shale oil are 294.5 and 304.3 mg/g TOC for kerogen sample at heating rates of 20 and 2°C/h, and the corresponding experimental temperatures are 360.2°C and 408.0°C, respectively. The utilization of lower heating rates is favourable for shale oil generation and it is recommended to employ a lower heating rate during in situ heating processes to maximize the economic benefits. The formation of crude oil cracking gas begins when simulating temperature exceeds 528.0°C (Easy Ro 2.6%) at a heating rate of 20°C/h and 480.0°C (Easy Ro 2.5%) at a heating rate of 2°C/h, as indicated by the carbon isotopic composition of gaseous hydrocarbons. The maximum oil production rate of the rock powder sample is 159.8 mg/g TOC, which is lower than that of the kerogen sample. It suggests that certain minerals in the Chang 7 shale may impede hydrocarbon generation. After the addition of pyrite, the highest yield of shale oil is 213.96 mg/g TOC, 33.9% higher than the yield of the original rock powder sample, reflecting the positive catalytic effect of pyrite on hydrocarbon generation of Chang 7 shale. Under geologic conditions, pyrite catalytic hydrocarbon generation may act primarily on the migration of organic matter by macromolecules, which considerably increases the probability of direct contact between pyrite and organic matter. Therefore, the organic‐rich shale with high pyrite content in Chang 7 member is the preferred target for in situ conversion of shale oil and gas in the Ordos Basin.