Abstract: A continuous process for recovery of oil and energy from oil shale. Particulate oil shale (1) is mixed with hot particulate heat carrier (2) containing free lime and retorted at conventional retorting temperatures in the presence of a purge gas (3). The purge gas comprises compounds which can react with the free lime. The mixture of spent shale and heat carrier solids (5) is separated from the product gas and vapors (4) and the solids are combusted in air (6),(7) with the optional addition of materials (8) to control the free lime content of the ash product from combustion. A stream of particles (12), extracted from the combustor is separated into a larger portion of coarser hot shale ash which is recirculated to the retorting zone as heat carrier. A smaller stream (15) is disposed of as waste after separating the energy (17) therefrom. The sensible and chemical heat from the waste solids and the sensible heat from the gases leaving the combustion zone, is recovered (J).