Although much of the world's petroleum resource-base is associated with mar
ine systems, regionally lacustrine petroleum systems are important. Individ
ual accumulations may exceed several billion barrels. In each of these case
s the oil is derived from a lacustrine source rock and may be produced from
either nonmarine or marine reservoir rocks. The purpose of this paper is t
o describe the factors that control lacustrine source rock development and
the nature of lacustrine reservoirs. Lacustrine oils display different phys
ical and chemical characteristics than their marine counterparts. These dif
ferences can be related to the nature of their precursor material. Although
the nature of the products are different, the geochemical threshold criter
ia for defining source rocks in both settings are the same because of commo
n expulsion requirements. Commercially significant lacustrine systems requi
re the presence of large, long-lived lakes. Such lake settings are tectonic
in origin and restricted to climatic settings where precipitation exceeds
evaporation. Within these large lake systems three primary factors determin
e source rock potential and quality. These factors are primary productivity
level, organic preservation potential, and matrix sedimentation rate, whic
h controls the dilution of preserved organic matter. Source rock potential
is maximized where both productivity and preservation potential are maximiz
ed and sedimentation rate is minimized. To some degree these factors can co
mpensate for each other. Hydrocarbon reservoir potential within lacustrine
basins is partially impacted by overall tectonic setting. Within extensiona
l settings, transport distances tend to be limited, with much of the sedime
nt being transported away from the basin. The sediments delivered to the la
ke are poorly sorted and sedimentologically immature, commonly resulting in
poor reservoirs due to both primary properties and their susceptibility to
diagenesis. Within rifts better reservoirs tend to develop along platform
or flexural margins. Stacking of reservoirs is important in lacustrine syst
ems but baffles and barriers are often present between individual sand unit
s. These barriers form as a result of lake level fluctuations. In compressi
onal settings transport distances tend to be longer, resulting in more matu
re, better sorted sediments leading to higher quality reservoirs. These res
ervoirs typically develop in fluvial-deltaic and wave-dominated shoreline s
ettings. Lacustrine carbonate reservoirs are locally important. These carbo
nates tend to develop during lake level lowstands and are dependent on diag
enesis (dissolution and karstification) for porosity and permeability devel
opment. Lacustrine reservoirs are often stratigraphically and areally limit
ed and display low individual well production rates. Within 'pure' lacustri
ne systems exploration opportunities appear to be often restricted by eithe
r reservoir presence or quality (i.e., production rates). The best explorat
ion opportunities in lacustrine basins appear to be associated with hybrid
systems where a lacustrine source and marine reservoir exist.