A method for processing asphaltenes is disclosed. The method can include separating asphaltenes from an asphaltene-containing composition and oxidizing the separated asphaltenes to form oxidation products. Alternatively, the method can include oxidizing asphaltenes within an asphaltene-containing composition without first separating the asphaltenes. Once formed, the oxidation products can be combined with other hydrocarbons. The amount of oxidation can be limited to an amount sufficient to produce a mixture suitable for the desired application. This method can be used to upgrade asphaltenes from a variety of sources, including oil sands. The oxidation step can be performed, for example, by introducing an oxidizing agent and, in some cases, a catalyst into the asphaltenes. A solvent or miscibility agent also can be introduced to improve mixing between the oxidizing agent and the asphaltenes.