This paper presents insights into the energy problem in Jordan and specifically into the energy conservation status in the industrial sector in Jordan. The results of a recent survey of the energy consumption of the industrial sector were used to draw deductions about the energy conservation situation. The country of Jordan imports oil from its neighboring countries to cover about 94% of its total energy demand. In the year 2000, the annual share of the industrial sector of the final energy consumption of the country is around 23%. Energy conservation in the industrial sector is a crucial area for energy saving. Many representatives of industrial firms are reluctant to participate in energy conservation projects because they think that the investment in energy-saving equipment may result in higher prices for their products, which may lead to reducing their competitiveness in the local market. Some managers are resistant to change because they do not know how to implement an energy conservation project. This research proposes a methodology for the effective implementation of energy conservation projects for Jordanian industries. The proposed methodology is useful for other countries. (C) 2003 Elsevier Ltd. All rights reserved.