The Qingxi Depression, over an area of merely 490 km (super 2) , is a petroliferous depositional center within the Jiuxi Basin. Lower Cretaceous source rocks in this depression are a suite of mudstones, dolomitic mudstones and argillaceous dolostones formed in a deep lacustrine environment. Although their distribution area is small, their thickness is sizable. High abundance and favorable types of organic matter provide an important material basis for petroleum generation. The majority of the source rocks in the Qingxi Depression are of maturation conditions for generating significant volumes of petroleum, and with only one peak generation period that commenced in the Neogene. The Himalayan movement resulted in a northerly overthrusting of the Qilian Mountains nappe to form a series of compressional faults, shear faults and rock fractures, all of which serve as major conduits for petroleum migration from west to east, and, in addition, as the reservoir space of the Qingxi Oilfield. Based on these factors, it is suggested that future exploration be on the Qingxi low bulge and favorable fracturing zone within this depression.