Abstract: Using the methods of fault throw, growth index and SGR,the characteristics of fault activity and sealing capability are analyzed. And the migrating direction of hydrocarbon under the affect of faults in the Shanghe Oilfield are studied with hydrocarbon distrubution. The results indicate that three major sectional faults are favorable for the vertical migration of hydrocarbon due to their continuous movement in the Guantao depositional period. Those faults with good lateral sealing capacity can help accumulation of hydrocarbon if the SGR number reaches 0.75.