Qaidam basin is a composite sedimentary basin developed on typical continen
tal crust. It comprises a Jurassic foreland basin and a Cenozoic extensiona
l basin. The geologic history of the Cenozoic Qaidam basin can be divided i
nto two megastages on the basis of stratigraphy and structure. The first me
gastage, from latest Cretaceous to Oligocene, consisted of two periods of r
ifting due to upwelling of the hot upper mantle. This is demonstrated by tw
o tectono-sequences formed by the rifting, the synrifting magmatic thermal
activity, and the control of protobasin development by syndepositional faul
ts. The second megastage comprises three tectonosequences that developed in
the Miocene and Pliocene and was a period of structural inversion that con
sisted of compressive downwarping and reverse faulting. This tectonic inver
sion may be ascribed to the long-distance propagation of compressive stress
caused by the collisions of the Indian and Eurasian plates.
The thick sequence of primary oil source rocks was deposited in the major r
ifted depression and the restricted drainage graben of the rifted protobasi
n. During the tectonic inversion megastage they were subject to deep burial
and prolonged heating. A major and a minor oil-generating basin have devel
oped. The tectonic inversion processes produced several structural features
that may contain potential hydrocarbon reservoirs and traps.