TECHNOLOGY FOCUS - INORGANIC CHEMISTRY - Preferred Components: The selective hydrogen- permeable membrane is a palladium membrane, or a palladium membrane comprising Ag or Cu. The membrane has a hydrogen permeation rate of greater than 50 m3 m-2 bar-1 h-1. The catalyst comprises nickel that is supported on alumina with a loading of 25 - 70 wt.% as NiO and additionally comprises La and/or Mg.Preferred Method: The reaction temperature in the first zone is less than 8000degreesC and the pressure is 0.5 - 10 MPa. An oxygen is also present in the first zone.    TECHNOLOGY FOCUS - ORGANIC CHEMISTRY - Preferred Components: The hydrocarbon comprises at least two carbon atoms (preferably 4-16C hydrocarbon or a mixture of 4-16C hydrocarbons). EXAMPLE - A catalyst was prepared by adding (NH4)2CO3 (as a precipitating agent) to an aqueous solution of Ni(NO3)2.6H2O and A1(NO3)3.9H2O. A pH of 8 - 8.5 was maintained, and the precipitate was aged in the supernatant solution for 2 hours at room temperature. The precipitate was separated, washed with water, and dried at 120degreesC before being calcined at 600degreesC for 4 hours. The NiO content of the catalyst was 40 wt.%, and the Al2O3 content was 60 wt.%. The catalyst (5.5 g) was diluted with quartz sand and placed in the first zone of the palladium membrane reactor with a bed layer height of 100 mm. The hydrogen permeation rate of the membrane was 52 m3 m-2 bar-1 h-1 and the H2/N2 separation coefficient was over 10000. A Daqing 6 # (RTM: solvent oil comprising a mixture of 5-7C hydrocarbons) was then fed to the catalyst-containing zone of the reactor at a rate of 0.34 ml/minute of liquid, and liquid water was also fed at a rate of 0.80 ml/minute. The reaction was conducted at 550degreesC and 1.1 MPa, and an Ar flushing gas was injected into the second hydrogen permeate zone of the reactor. The molar feed rate of argon fed to the second reactor in unit time was 1.8 times that of the molar rate of feeding carbon atoms to the first reactor zone. The results showed that the product methane selectivity was 2.8%, and the hydrogen selectivity was 97.2%. The purity of the hydrogen having passed through the membrane (not accounting for the Ar flushing gas) was greater than 99.9%.