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“
It's called a lodestone. They're important. You'll find out later!
”
– Scree to Jen
Lodestones are special rocks that Scree absorbs to enable him to possess statues. They rest darkly on the ground, until Scree approaches, which makes them glow while bobbing up and down. They enable him to possess various statues within the demon realms.
Lodestones are egg-shaped and orange-brown in colour. The material they are made from is never explained, but they seem to be of a rocky substance unlike anything else seen in Oblivion.
Trivia
It's possible to finish the game with 33 leftover lodestones.