A method of extracting hydrocarbons, energy and other products in situ from an underground coal deposit. A selected part of the coal deposit is heated by electrical induction to temperatures high enough to effect the destructive distillation of coal. The gases and liquids so produced are collected. Next, air or oxygen is injected into the remaining deposit which consists primarily of coke in order to burn it in place. The hot combustion gases thereby yielded are led to the surface of the deposit to generate energy. Lastly, the heat remaining underground after the coke has been burned is extracted by injecting water or steam into the deposit. The resulting steam is conducted to the surface to drive a steam turbine. The electrical induction heating is conveniently effected by passing a selected time varying current through a conductive path encompassing that part of the coal deposit to be heated.