Different algal species were screened and petroleum degrading algae was isolated for degradation of oil in oily water sewer, contaminated rain water sewer, sanitary waste pipes and blow down streams. TOC, TSS, BOD, COD etc. have been studied to quantify the total oil degradation. Algae has many advantages because of its cost effectiveness and heat generation is minimal is case of algal cultures. So, we need to shift our focus on algal degradation of petroleum wastes.