The Carboniferous Ha’erjiawu Formation in the Santanghu Basin represents a significant potential target for shale oil exploration, yet its characteristics remain largely unknown. This study utilizes a combination of elemental and organic geochemical analyses to investigate the paleoenvironmental conditions and shale oil potential of the Carboniferous Ha’erjiawu Formation black shales within the Santanghu Basin. The results suggest that the Ha’erjiawu Formation black shales were deposited in water columns with low salinity and dysoxic conditions, as indicated by paleosalinity and redox proxies such as Rb/K, B/Ga, B content, V/Cr, V/(V + Ni), V/Al, and Mo/Al. Furthermore, the climatic proxies (Ga/Rb, Sr/Cu and K2O/Al2O3) indicate that the Santanghu Basin underwent a warm-humid/cold-dry oscillating climate during the deposition of the Ha’erjiawu Formation black shales, potentially influenced by synsedimentary volcanic activity or the Late Paleozoic glaciation. The organic geochemical analyses have revealed that the Ha’erjiawu Formation black shales are rich in type II kerogen, which is in the early mature to mature stage, indicating a significant potential for oil generation. However, there is considerable variation in the oil content of the analyzed samples, with only a few containing movable oil. Given the high abundance of brittle minerals within the Ha’erjiawu Formation black shales, it will be indispensable to meticulously evaluate and identify intervals exhibiting abundant movable oil for successful shale oil exploration and development within this geological unit.