Natural gas and condensate derived from Carboniferous-Permian (C-P) coaly source rocks discovered in the Dagang Oilfield in the Bohai Bay Basin (east China) have important implications for the potential exploration of C-P coaly source rocks. This study analyzed the secondary, tertiary, and dynamic characteristics of hydrocarbon generation in order to predict the hydrocarbon potentials of different exploration areas in the Dagang Oilfield. The results indicated that C-P oil and gas were generated from coaly source rocks by secondary or tertiary hydrocarbon generation and characterized by notably different hydrocarbon products and generation dynamics. Secondary hydrocarbon generation was completed when the maturity reached vitrinite reflectance (Ro) of 0.7%–0.9% before uplift prior to the Eocene. Tertiary hydrocarbon generation from the source rocks was limited in deep buried sags in the Oligocene, where the products consisted of light oil and gas. The activation energies for secondary and tertiary hydrocarbon generation were 260–280 kJ/mol and 300–330 kJ/mol, respectively, indicating that each instance of hydrocarbon generation required higher temperature or deeper burial than the previous instance. Locations with secondary or tertiary hydrocarbon generation from C-P coaly source rocks were interpreted as potential oil and gas exploration regions.