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The undisputed economy of the Diesel-type engine using heavy fuel oil is recognized, as no other power-generating unit of today shows better thermal efficiency. It is the result of the direct application of fuel in working cylinders. Transmission processes, such as the burning of fuel under a boiler to produce a working agent which must be carried to the prime mover, are less economical. The various factors which enter into a comparison between steam and heavy-oil installations are illustrated. The subject is treated in a more or less elementary manner. The diagrams and sketches are intended to explain the working principles of such examples of two and four-cycle engines as are now in actual operation in cargo ships, these being of the single-acting type. Double-acting and opposed-piston-type engines have been built and are being tried out. The working processes of two-cycle and four-cycle engines are illustrated and described in some detail, inclusive of critical comment.