Based on an integrated ananlysis of the regional geological tectonic and geochemical data，theauthors simulated and analysed the histories of burial，heat transfer and hydrocarbon generationand expulsion in the Luxi hollow of the Kailu basin，by using basin modelling the results of thesimulation show that the major hydrocarbon—generating and expulsing rocks are the Upper Juras—sic Jiufotang and Shahai Formations．Generation of hyorocarbons mainly occurred after the Fu—xininan stage while expulsion mainly occurred since the Cretaceous，and tectonic movement in theLate Jurassic had important effect on the heat transfer and generation and expulsion of hydrocar—bons in the area．The geological analysis suggests that abundant hydrocarbons are mainly dis—tributed in structural belts and various kinds of sandstone and conglomerate reservoirs near thehydrocarbon—generating hollow．