The lack of in-depth analysis on the reservoir characteristics and the paleoenvironmental conditions of the Niutitang Formation in the study area has led to an unclear understanding of its geological background. In this study, core samples from well SZY1 were selected, and X-ray diffraction (XRD), scanning electron microscopy (SEM), and quantitative elemental analysis were employed to systematically investigate the reservoir properties and paleoenvironment of the shales. The results indicate that the Niutitang Formation shales form a low-porosity, low-permeability reservoir. By utilizing indicators such as the chemical index of alteration (CIA) and elemental ratios, the study delves into the paleoclimate and paleoproductivity of the region.The (La/Yb)n ratio is approximately 1, indicating a rapid deposition rate that is beneficial for the accumulation and preservation of organic matter. The chondrite-normalized and North American Shale Composite (NASC)-normalized rare earth element (REE) distribution patterns of the shales show consistent trends with minimal variation, reflecting the presence of mixed sources for the sediments in the study area. Analysis reveals that the Niutitang Formation shales are enriched in light rare earth elements (LREEs) with a negative europium anomaly, and the primary source rocks are sedimentary and granitic, located far from areas of seafloor hydrothermal activity. The NiEF and CuEF values suggest high paleoproductivity, and the shales were deposited in an anoxic-reducing environment. The depositional environments of the Marcellus and Utica shales in the United States, the Wufeng-Longmaxi black shales in the Changning area of the Sichuan Basin, and the shales in the study area are similar, characterized by anoxic reducing conditions and well-developed fractures. The thermal evolution degree of the study area is relatively moderate, currently in the peak gas generation stage, with the reservoir quality rated as medium to high, indicating good potential for hydrocarbon accumulation and promising exploration prospects.