Reserves, characteristics, energetics, chemistry, and technology of Israeli oil shales are described. Oil shale is the only source of energy and the only organic natural resource in Israel. Its reserves of about 12 billion tons will be enough to meet Israel＇s requirements for about 80 years. The heating value of the oil shale is 1,150 kcal/kg, oil yield is 6%, and sulfur content of the oil is 5-7%. A method of oil shale processing, providing exhaustive utilization of its energy and chemical potential, developed in the Technion, is described. The principal feature of the method is a two-stage pyrolysis of the oil shale. As a result, gas and aromatic liquids are obtained. The gas may be used for energy production in a high-efficiency power unit, or as a source for chemical synthesis. The liquid products can be an excellent source for production of chemicals.