Abstract: Geologic conditions, including source rock TOC, type, maturity, natural gas type and gas source, of J2y gas source rock in Minhe Basin were analyzed in order to discuss Minhe basin Jurassic system potential capacity of shale. Comparison with North America oil & gas formation conditions showed Minhe Basin has mature hydrocarbon source rock, and it’s a proved OGB. Compared with north America shale gas, it is found that J2y mud shale has high gas concentration, high rigid mineral granule concentration, high resources concentration, has geologic base to form shale gas, with further exploration and development potential.