Abstract: The present invention provides a process for upgrading a hydrocarbon material in the presence of a molten salt in a manner which reduces the requirements for expensive ceramic materials to withstand the corrosive nature of the salt. A molten salt containing carbon is introduced into a heat generation zone which is located in a lower portion of an upwardly extending elongated reactor. Oxygen is introduced into the heat generation zone in an amount sufficient to react with substantially all of the carbon and to heat the molten salt to a desired temperature. The heated molten salt together with the gaseous reaction products of the carbon-oxygen reaction flows upwardly through the reactor to a hydrocarbon material reaction zone which is located within the reactor and above the heat generation zone. The hydrocarbon material to be treated is introduced into the reaction zone and into the molten salt where it produces gaseous reaction products and unreacted carbon entrained in the flowing molten salt.