In the Qiquan fault block area of Qaidam Basin, complex faults, natural fractures, loose reservoir cementation, and low formation energy are the development problems. The adoption of vertical well mining has less cumulative oil production. The purpose is to realize horizontal well fracturing without well channling under the condition of short well spacing through research, and to take into account transformation and energy storage to achieve long-term stable production. By analysing the lithology, physical properties and geomechanical characteristics of different reservoirs under the background of loose sand conglomerate, the fracture morphology is analysed and judged. According to the specific situation of horizontal well channeling in the past block, the cause of well channeling is determined, and the scale is optimized to prevent artificial fracture communication between Wells in the case of short well spacing. The overall development idea of unconsolidated sand conglomerate horizontal well in complex fault block area, which is based on energy replenishment without well channeling and taking into account moderate fracturing transformation, is feasible and can achieve stable production after pressure.