Spectrum analysis of natural gamma ray spectral logging (SGR) data is a critical part of surface informa- tion processing systems. Due to the low resolution, which is an inherent weakness of SGR, and the low signal-to-noise ratio problem of logging measurements, SGR is usually treated with a low confidence level. The Direct Demodulation (DD) method is an advanced technique to solve modulation equations interactively under physical constraints. It has higher sensitivity and spatial resolution than the traditional methods and can effectively suppress the logging noise. Based on standard count rate spectral data obtained from the China Offshore Oil Logging Company SGR Calibration Facility, this paper presents the application of the DD method to gamma-ray logging. The results are compared with four traditional algorithmic methods, showing that the DD method is a credible choice, with higher sensitivity and higher spatial resolution in gamma-ray log interpretation. The Point-Spread-Function of the Shengli Oil Logging Company's natural gamma ray spectroscopy instrument is obtained for the first time. The quantities of various radionuclides in their calibration pits are also obtained. The DD method was applied successfully to gamma-ray logging, offering a new option for SGR logging algorithm selection.