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Why is there oil in Yanchi, Ningxia?

Geographical location and geological conditions, natural geographical conditions.

1. Geographical location and geological conditions: Ningxia Yanchi is located in the northwest of China. During the geological history, a large number of continental source rocks were deposited in this area, which was the main source of oil.

2. Physical and geographical conditions: Yanchi area in Ningxia has good oil storage conditions, including good lithologic traps and structural traps, which together lead to rich oil reserves in this area.