A process is proposed for the conversion of oil-shale kerogen to soluble degradation products and for the removal of water-soluble minerals. The kerogen is converted to soluble products by the carbon monoxide-water reaction at 450 C and at elevated pressures. Because the reaction is performed in an aqueous medium, the process is compatibly with recovery of commercially valuable water-soluble minerals such as nahcolite. The process offers environmental advantages and may prove to be a very efficient method of converting kerogen to a usable fuel source. If desirable, techniques could be developed for removing aluminum from dawsonite oil shale in conjunction with the process.