Organic and mineral content in oil shale alternative to petroleum was studied, elemental composition was determined and the studies on oil shale resources in Azerbaijan and efficient ways to use, obtaining fuel fractions from oil shale were generalized as a review. Simultaneously, the paper represents the studies on the problems of the current state of processing of heavy oil residue, catalytic processing of heavy crude oil; catalytic processes were classified and the investigations were summarized on the direction of obtaining light coloured petroleum products by heavy crude oil and also by co-processing them with oil shale via hydrocracking process that is the most effective one among catalytic processes. Technological parameters were determined for mazout and oil shale hydrocracking process: temperature - 430-440 C, pressure – 10-60 atm, maximum possible amount of oil shale – 7.5-10 wt.%. Mineral content in oil shale was found to be responsible for coke extraction preventing equipments from coking. Light coloured petroleum products (gasoline and diesel fraction) of 61% (mas.) and cracked residue of 32-34% were obtained by mazout and oil shale hydrocracking process.