Abstract: The Permian Lucaogou Formation in the Jimsar sag, in the Junggar Basin, Xinjiang is rich in continental shale oil resources, with an estimated resource of more than 15.8×108 t. In recent years, in order to realize the effective development of shale oil, and based on detailed analysis of the geological characteristics, engineering technologies, production characteristics and laws of continental shale oil in the Lucaogou Formation, combined with development practice, the following achievements and understandings have been obtained: ① The source rocks of the Lucaogou shale oil in the Jimsar sag are fine-grained continental shale deposited in saline lakes. They are high quality source rocks with large thickness, and are characterized by integrated sources and reservoirs. Oil accumulated in-situ in the shale intervals and, in the sweet spot intervals, hydrocarbons were mainly supplied from adjacent source rocks with self-generation as auxiliary. All of these characteristics indicate typical continental shale oil. ② It is clear that the free porosity and free oil reserves abundance in the fracture controlling areas created by volume fracturing from horizontal wells are the basis for high production of shale oil. ③ With increase in burial depth, the horizontal stress difference between the two directions increases, and the complexity of hydraulic fractures decreases, which is the main reason for the low production of some horizontal wells with good oil-bearing properties in the “upper sweet spot interval”. ④ Oil viscosity is the key control factor for production from horizontal wells in the “lower sweet spot interval”. ⑤ The penetration length of high quality “sweet spots” shale and the proppant volume per meter during hydraulic fracturing are the key engineering factors for high production from horizontal shale oil wells in the Jimsar sag. ⑥ Due to imbibition and replacement between fracturing fluid and shale oil in the matrix pores, production can be improved by shutting in wells for some time after fracturing. ⑦ Due to the limited length of hydraulic fractures, the appropriate well spacing should not be larger than 200 m. Through continuous research and development practice, shale oil development has obtained good results. The maximum annual production of single horizontal well has been more than 1.3×104 m3. Since 2019, the area has basically entered the stage of scale productivity construction test, accumulating rich experiences for the industrial development of continental shale oil in China.