This review proposes a new strategy for conversion of the heavy oil component into valuable chemicals. A silica monolayer solid acid catalyst was found to convert alkyl polycyclic aromatic hydrocarbons in a heavy oil such as vacuum gas oil (VGO) selectively into long-chain alkanes and polycyclic aromatic hydrocarbons. For application of practical VGO to the dealkylation, removal of basic compounds causing deactivation of solid acid catalyst was also investigated. Dealkylated polycyclic aromatic hydrocarbons were converted into tetralin derivatives by partial hydrogenation, and then into useful benzene derivatives via ring-opening. The contributions of catalyst components were studied. Long chain alkanes were obtained and can be used as fuels for diesel vehicles and aviation, unlike conventional fluid catalytic cracking which derives a wide range of chain lengths as a result of alkane cracking. The strategy is illustrated with experimental results.