A process is provided for stabilizing a petroleum liquid feed stream which contains a more volatile hydrocarbon portion, a less volatile hydrocarbon portion and water. The more volatile hydrocarbon portion of the petroleum liquid feed stream is reacted with the water in a fluidized bed heat exchanger to form a solid hydrate and a petroleum liquid product which contains the remaining less volatile hydrocarbon portion of the petroleum liquid feed stream. The petroleum liquid product is separated from the solid hydrate to recover the resulting petroleum liquid product which is substantially less volatile and more stable than the petroleum liquid feed stream and more suitable for storage or transport, particularly at low pressures.