Geochemical data from a variety of analytical techniques were used to define organic facies variations in the Taranaki Basin. Geochemical data indicate that the Late Cretaceous-Paleocene Pakawau and the Eocene Kapuni Formations are the only effective source rocks in the basin. The formations consist of paralic coal, shale, and sandstone sequences and contain predominantly terrestrial organic matter. The extent of effective source beds is limited by thermal maturity. Mature Kapuni source rocks occur only in the Taranaki Graben. Mature Pakawau source beds have been identified only in two isolated areas on the Western Platform. The results of this study show that coal, as well as shale containing terrestrial kerogen, can generate significant quantities of oil.