Abstract: The method enables the attainment of an open and continuous flow of an aqueous slurry containing carbonaceous solids into a high-pressure and high temperature environment which will result in the occurrence of at least two chemical processes: (1) aqueous pyrolysis (hydrous pyrolysis) and (2) hydrolytic disproportionation. This combination of processes will effect conversion of suspended organic materials into hydrocarbon liquids or gases depending on the mix of the temperature, pressure, and residence time in the reactor. Thereafter, the hydrocarbon-bearing slurry can be refined (separated into various constituents) using standard existing technologies.