The present invention provides a method of converting coal to a petroleum product. The method includes the steps of mixing the coal and water to form a mixture, and heating the mixture to approximately 500 degrees Fahrenheit. The method further includes separating the mixture in a first separator into a liquid stream of a water bearing minerals and a solid stream of coal, and transferring the coal from the first separator to a coking reactor wherein the temperature is raised to approximately 1,000 degrees Fahrenheit to drive off lighter fractions of the coal as a gas. The method also includes transferring the gas to a fourth separator to separate water and liquid petroleum product from the gas.