
Understanding Transformer Oil: Purpose and Common Types
What Is Transformer Oil?
Transformer oil is a specially refined dielectric fluid designed for high‑voltage electrical equipment.
It supports three non‑negotiable functions:
- High‑performance electrical insulation
- Efficient heat transfer and cooling
- Protection against moisture, oxidation, and internal discharges
Main Categories of Transformer Oil
| Oil Type | Base Material | Key Application Strength |
|---|---|---|
| Mineral Oil | Petroleum distillates | Cost‑effective, widely used in outdoor substations |
| Natural Ester Oil | Plant‑based oils | Biodegradable, high fire point, eco‑sensitive areas |
| Synthetic Ester Oil | Man‑made esters | High thermal stability, long service life |
| Silicone Oil | Polydimethylsiloxane | Extreme fire resistance, indoor or confined spaces |
How Oil Delivers High‑Level Electrical Insulation
Dielectric Strength Superiority
Transformer oil has significantly higher dielectric strength than air.
It fills tiny gaps between windings, layers, and core components to prevent flashovers and short circuits.
- Prevents ionization and corona discharge under high voltage
- Maintains stable insulation even at elevated operating temperatures
- Works alongside cellulose insulation to create a reinforced dielectric system
Arc Suppression and Fault Prevention
Oil actively suppresses electric arcs that can occur during switching, surges, or internal faults.
This protects windings, stops breakdown propagation, and improves overall grid stability.
Insulation Performance Comparison
| Medium | Dielectric Behavior | Suitability for HV Transformers |
|---|---|---|
| Transformer Oil | High breakdown voltage, stable | Excellent |
| Air | Low breakdown, prone to ionization | Poor |
| Dry Solid Insulation | Limited gap filling, risk of voids | Limited to dry‑type units |
The Critical Cooling Role of Transformer Oil
How Oil Removes Operational Heat
Transformers generate continuous heat from copper losses and core losses.
Oil absorbs this heat through direct contact and circulates it to external radiators.
- Maintains safe winding and core temperatures
- Slows thermal aging of insulation materials
- Allows transformers to operate at rated load continuously

Common Oil Cooling Methods
- ONAN: Natural oil, natural air
- ONAF: Natural oil, forced air
- OFAF: Forced oil, forced air
- OFWF: Forced oil, forced water
Thermal Benefits of Oil Immersion
Consistent cooling preserves dielectric properties, reduces resistance losses, and improves energy efficiency.
This is especially important for heavy‑duty industrial and utility transformers.
How Oil Protects Against Moisture and Contamination
Moisture Barrier Function
Moisture severely weakens insulation and accelerates paper degradation.
Oil acts as a hydrophobic barrier that repels water and limits moisture absorption.
Contamination Control
Oil suspends small particles and degradation byproducts, which can then be removed via filtration.
This keeps internal components clean and extends operational reliability.
Sealed System Components
- Conservator tanks
- Silica gel breathers
- Diaphragm or bladder seals
How Oil Immersion Extends Transformer Service Life
Insulation Preservation
The single largest factor in transformer lifespan is the solid insulation condition.
Oil reduces heat, moisture, oxidation, and electrical stress—all of which extend insulation life.
Temperature and Aging Relationship
Industry guidelines show that reducing operating temperature can double or triple insulation life.
Oil’s cooling effect directly delivers this benefit.
Longevity Through Maintenance
- Dielectric performance remains high
- Thermal efficiency stays consistent
- Service life can reach 30–40 years or longer
Environmental and Safety Considerations
Fire Safety Differences
Mineral oil has a lower fire point, while ester and silicone oils offer exceptional fire resistance.
Modern standards encourage high‑fire‑point fluids in urban, indoor, and densely populated areas.
Environmental Impact
Mineral oil is non‑biodegradable and can harm ecosystems if spilled.
Ester‑based oils break down naturally and reduce environmental risk.

Safe Handling and Disposal
- Secondary containment bunds
- Regular leak inspection
- Certified waste oil recycling
- PCB testing for older units
Maintenance Best Practices for Oil‑Immersed Transformers
Routine Oil Testing
- Breakdown Voltage (BDV)
- Moisture content
- Dissolved Gas Analysis (DGA)
- Acidity and interfacial tension
Oil Reconditioning
Over time, oil degrades due to heat, oxygen, and contamination.
Vacuum dehydration, filtration, and reclamation restore performance at a fraction of replacement cost.
Predictive Maintenance
- Oil temperature
- Level and flow
- Leakage
- Gas formation
Conclusion
To sum up the question Why are transformers submerged in oil:
Oil delivers unmatched electrical insulation, efficient cooling, moisture and contamination protection, and significant service life extension. It remains the most reliable, proven, and practical solution for medium and high‑voltage power transformers worldwide.
