This paper addresses the development and evolution of oil/water separation techniques. The paper addresses the technology and process performance associated with various oil/water separation techniques, including oil/water skimmers, API separators, air flotation, ultrafiltration, membrane filtration, batch treatment with emulsified oil, among others. This paper reviews common treatment technologies and system performance for treatment of oily wastewaters, such as bilge water contained in ships. Oil removal efficiencies and a preliminary cost assessment are presented in the paper.