Heavy oil was cracked in the presence of catalyst to produce oil gas. After examining variety of catalysts, it was found that basic catalysts and nickel catalysts, especially nickel dolomite catalyst were suitable for this purpose. V2O5 showed best result as promoter when 0.5%∼1.5% by weight was added to nickel-refractory catalysts. Although nickel catalyst is deactivated by deposits of carbon or sulphur compounds, its activity is restored by blasting operation. Prolong use of catalyst under coke deposit will render its reactivation difficult. From the investigation on the heat-resistance properties of nickel catalysts, it was found that alumina and dolomite were good carriers, but the activity of nickel-alumina catalyst were inferior to that of nickel-dolomite catalysts. By use of nickel-dolomite catalyst the optimum conditions were decided. This catalyst has withstood thousand hours of use.