Oil shale is an organic-rich fine-grained sedimentary rock containing kerogen from which liquid hydrocarbons can be produced. In addition to kerogen, general composition of oil shales constitutes inorganic substance and bitumens. Based on their deposition environment, oil shales are classified as marine, lacustrine and terrestrial oil shales. Oil shales differ from oil-bearing shales, shale deposits that contain petroleum that is sometimes produced from drilled wells. Examples of oil-bearing shales are the Bakken Formation, Pierre Shale, Niobrara Formation, and Eagle Ford Formation. Accordingly, shale oil produced from oil shale should not be confused with tight oil, which is also frequently called shale oil.

Kerogen is solid, insoluble organic matter in sedimentary rocks. It consists of a variety of organic materials, including dead plants, algae, and other microorganisms, that have been compressed and heated by geological processes. All the kerogen on earth is estimated to contain 1016 tons of carbon. This makes it the most abundant source of organic compounds on earth, exceeding the total organic content of living matter 10,000-fold.