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Usually, electricity is generated or more accurately converted from other energy sources (conservation of energy). And most of the electricity we create are from electric generators which involve turning turbines (imagine a big wheel). To power these generators can involve running water (Hoover dam) or heating up water and use the steam to turn the turbines. the generators convert the rotational mechanical energy to electricity.

So oil is used to generate the heat used to heat the water to produce the steam that turns the turbines that the generator converts into electricity.

A:

Oil is burned in power-stations to produce heat. The heat boils water to make steam, which is used to turn the generators.

A:

One way that oil is used to produce electricity works in the same way coal is used. Ultimately all power stations make electricity the same way. You burn something to heat water which turns to steam. This steam is then passed through a turbine which spins. This turbine then spins a set of wire loops exposed to a magnetic field which causes an electrical flow in the wire. So to answer the question oil is burnt to heat water in the production of electricity in some cases.

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