Bacterial strains which degrade crude oil were isolated by liquid culture from oil-spilled soil, and four isolates were selected among them. The strain Hl7-1 was finally selected after testing emulsifying activity and oil conversion rate. The strain Hl7-1 was identified as a Nocardia sp. based on the test for morphological, biochemical and physiological characteristics. It appears to be highly specialized for growth on crude oil in minimal salts medium since it showed preference for oil or degradation products as substrates for growth. It was found that it could grow on at least fifteen different hydrocarbons. The optimum cultural and environmental conditions were seeked. Cell growth and emulsification activity as a function of time were also determined. Crude oil degradation and the reduction of product peak was identified by the analysis of remnant oil by gas chromatography after 3 days of cultivation. Approximately 83% of oil were converted into a form no longer extractable by organic solvents.