Abstract:Shale gas has been listed as a new type of mineral resource recently in China. Its exploration and development has been paid great attention. Dongying sag is located in Luxibei plains. It is a main producing area of Shengli oilfield. Oil and gas resources are rich in Paleogene strata. It will become one of the key area of shale gas exploration and development in our country in the next step. Based on the core analysis results of No.38 Niu well in Dongying sag, porosity, total organic carbon content, thermal evolution degree and the brittleness mineral content of mudstone at the bottom of the third section of Shahejie formation in Dongying sag have been analyzed comprehensively. It is predicated that there is bright future for shale gas prospecting in this area.