Abstract: A system and method for cracking, hydrogenating and extracting oil from underground deposits includes a gasifier, an injection well and a production well. The gasifier creates high pressure, high temperature syngas. The pressurized syngas flows through an injection well into a deposit of oil under the ground to crack and hydrogenate the oil to produce upgraded oil with a reduced density and viscosity. The production well of the system receives the reduced density and viscosity oil, transports it above the ground where it may be further separated into a portion that may be sold and a portion that can be gasified in the gasifier.