The present invention is directed to the upgrading of heavy 
petroleum oils of high 
viscosity and low 
API gravity that are typically not suitable for pipelining without the use of diluents. It utilizes a short 
residence-time pyrolytic reactor operating under conditions that result in a rapid pyrolytic 
distillation with 
coke formation. Both physical and chemical changes taking place lead to an overall molecular weight reduction in the 
liquid product and rejection of certain components with the byproduct 
coke. The 
liquid product is upgraded primarily because of its substantially 
reduced viscosity, increased 
API gravity, and the content of middle and light distillate fractions. While maximizing the overall liquid yield, the improvements in 
viscosity and 
API gravity can render the 
liquid product suitable for pipelining without the use of diluents. This invention particularly relates to reducing 
sulfur emissions during the 
combustion of byproduct 
coke (or coke and gas), to reducing the 
total acid number (TAN) of the liquid product, and to reducing the 
hydrogen sulfide content of one, or more than one component of the product 
stream. The method comprises introducing a particulate 
heat carrier into an up-flow reactor, introducing the feedstock at a location above the entry of the particulate 
heat carrier, allowing the heavy 
hydrocarbon feedstock to interact with the 
heat carrier for a short time, separating the vapors of the product 
stream from the particulate heat carrier and liquid and byproduct 
solid matter, regenerating the particulate heat carrier in the presence of the 
calcium compound, and collecting a gaseous and liquid product from the product 
stream.