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The Lucaogou formation of the Permian System in the Jimsar Sag, Junggar Basin, represents a typical example of mixed siliciclastic–carbonate continental shale oil in China. After more than a decade of exploration and pilot development, remarkable technological and production breakthroughs have been achieved, confirming its substantial resource potential. Nevertheless, the current depletion-based development mode continues to face critical challenges such as rapid formation energy loss, sharp production decline rates, and persistently low recovery factors. The key technical direction for improving oil recovery at the later stage of development therefore remains unclear and urgently requires systematic investigation. To address these issues, a coupled numerical model of hydraulic fractures and the shale matrix was established based on the actual geological model of a well platform located in the lower sweet-spot interval of the Jimsar Sag. The model was validated through history matching by optimizing key reservoir and fracture parameters. On this basis, an inter-well gas injection displacement scheme involving three horizontal wells was designed, in which gas is injected through the central well and oil is produced from the two adjacent wells following an initial depletion phase. Simulation results show that, for Jimsar shale oil characterized by an ultra-tight matrix and poorly developed natural fractures, the degree of communication between horizontal wells through hydraulic fractures is the key factor determining the effectiveness of gas injection development. Comparative analyses of different injected gases (CO2 and CH4), injection timing, and injection pressure were performed to clarify their influence on the displacement process. Based on these results, an optimized operation strategy was proposed, involving cyclic reinjection of produced gas after the initial breakthrough of the injected gas at the production wells. Compared with depletion development, the designed inter-well gas injection scheme increases the cumulative oil production by approximately 45%, while the oil utilization ratio-an indicator of carbon and energy efficiency-nearly doubles. The proposed cyclic reinjection of produced gas further enhances carbon utilization efficiency and reduces the external CO2 supply demand, thereby achieving a dual objective of improving oil recovery and promoting effective carbon recycling. Overall, the developed coupled model and the derived optimization strategy provide a technically feasible and scientifically grounded approach for enhancing oil recovery in continental shale oil reservoirs. The findings clarify the mechanisms and governing parameters of inter-well gas displacement under ultra-tight conditions, and the proposed cyclic reinjection mode offers a practical pathway for synergistic oil production enhancement and CO2 geological utilization. This study provides important theoretical support and engineering reference for large-scale application of gas injection displacement and CO2 sequestration in the late-stage development of continental shale oil fields in China.
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