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Technological advances to improve the economic aspects of residue processing are reviewed. They include residue fluid catalytic cracking, automated residue demetallization, solvent desphalting, and gasification of pitch and coke. Thermal processing, hydroprocessing, ebullating bed and slurry-phase hydrocracking are also discussed. Hydrocracking and residue FCC processes are compared and the main issues are summarized in tabular form. Key factors in selecting residue processing strategies are the need for flexibility in handling heavy high-metals crude oils, and the economic benefits obtained by converting low-value residues to high value fuels, hydrogen, and electric power. 10 refs.