Geological and geophysical data on the world distribution and conditions of
continental-type mud volcanoes are presented. The deep structure of mud-vo
lcanic activity zones is considered. Various aspects of their relationships
with deep faults and oil and gas deposits are discussed. Based on an analy
sis of these data, a mechanism of the formation and development of mud volc
anoes is proposed. This mechanism is incorporated into a more general conce
pt of the fluid motion in the upper crust. The known geomechanical model of
crustal waveguides [Karakin, 1990; Karakin and Kambarova 1997] forms the b
asis of the scheme proposed. This model suggests the existence of a self-ex
cited regime of waveguides and periodically alternating ascending and desce
nding fluid flows. Mud volcanoes can arise in the zones of ascending fluid
flows provided the fluids penetrate clayey sedimentary strata broken by a f
ault system. If the fluids permeate into a reservoir with an impermeable co
ver, ordinary oil and gas deposits form. Thus, oil and gas deposits and mud
volcanoes have a common nature.