Effective mud shale system of Hetaoyuan Formation in the Biyang Depression was divided base on geological and exploratory conditions. According to the relationship between TOC and oiliness, the classification evaluation criteria was identified to reflect the shale oil accumulation degree. Using ΔlogR method to identify organic carbon and oiliness, and the loss part of the oil was recovery corrected. According to the mechanism of generation-expulsion, the criteria of movable oil was identified. Using volume method, the total and movable oil resources were calculated. The results show that effective mud shale system is found mainly in the deep depression; shale oil resources is divided into three grades: enriched resources, low efficient resources, scattered resources; logging method can be used to identify organic carbon and oiliness; it is necessary to correct light and weight hydrocarbon. The total systematic resources is 894 million tons to 945 million tons, the total movable resources is 246 million tons to 237 million tons, the Upper Member of Eh3 resources have a higher degree of enrichment than the other two. Movable resources accounts for more than 25 percent of the total, and more than 90 percent of movable resources is attributed to Class I resources.