Abstract: According to the China national petroleum assessment 2007, China is rich in oil shale resources. In China, the total oil shale resources and shale oil resources are estimated at 7199×10⁸ tons and 476×10⁸tons, respectively. Most of oil shale resource in China is enriched in the Songliao Basin, the Ordos Basin and the Jungar Basin etc. Based on studying exploration and development situation, exploration and development prospects of oil shale resources in China were forecasted. The shale oil production will rise rapidly, and will reach 200×10⁴ tons in 2010, 1000×10⁴ tons in 2020. According to China's oil shale industry development constraints, policies were put forward to promote the development of oil shale industry. Increasing investment in science and technology, resolving the environmental problems, oil shale will be comprehensively developed and utilized and shale oil will become one of available oil rsource.