Molecular hydrogen is produced by a large number of bacterial species, many of which occur in marine sediments. Such bacteria have been demonstrated in marine bottom deposits, oil-bearing sands, and in reservoir fluids from oil wells. Up to 10,000 hydrogen-producing bacteria were found per gram of mud from the floor of the Pacific Ocean. Pure or enrichment cultures of such bacteria have been shown to liberate hydrogen from organic compounds at temperatures ranging from near 0°C. to as high as 65°C. Hydrogen is liberated from virtually all kinds of organic compounds, and most readily from carbohydrates or polyhydroxy alcohols. Redox potentials more reducing than Eh -0.05 volt and reactions ranging from pH 5.5 to 9.8 favor hydrogen formation. It is poss ble to demonstrate the production of hydrogen in samples of marine mud by inhibiting the activities of hydrogen-oxidizing bacteria. The latter are believed to account for the general exiguity or lack of molecular hydrogen in marsh gas and other natural gases, although traces of hydrogen have been reported in such gases. The rapid consumption of hydrogen by samples of soil and sediments is attributed to the activities of bacteria or their enzymes which catalyze its oxidation. Listed are several species of autotrophic aerobes which oxidize hydrogen to water. Of greater geological importance are various kinds of anaerobes which oxidize hydrogen with the formation of methane, simple organic acids, ammonia, and hydrogen sulphide. Evidence is presented that bacteria produce methane by catalyzing the reduction of carbon dioxide or other one-carbon-atom compounds with hydrogen. Other types of bacteria catalyze the reduction of carbon dioxide by hydrogen with the formation of formic, acetic, and possibly other carboxylic acids. Amino acids and other organic compounds are also reduced by hydrogen-activating ba teria. Certain bacteria found in sediments utilize energy from the oxidation of molecular hydrogen for the reduction of sulphate. Others reduce nitrate and nitrite. The hypothesis is advanced that various kinds of hydrogen-oxidizing bacteria, in conjunction with radioactivity and other catalytic agents in sediments, may contribute to the formation of petroleum hydrocarbons. Different sources of hydrogen and the energetics of some hypothetical reactions are considered. End_Page 1709------------------------------