The first part of this article describes the current understanding of the dynamic interaction between protein folding and function and water, dependent on the polarity of water. The second part examines the role of water in converting organic matter into oil and coal by summarizing the history and result of experiments done over the last 13 years by Exxon researchers. Water under pressure and at high temperatures (300 C) can act as a solvent, a catalyst, and a reagent. Organic molecules can be fragmented by high temperature, but water and brine can also fragment them, sometimes more effectively. The actual mechanism by which water works is still a matter of active investigation, but the fact that it can be involved in oil formation could weak havoc on established ideas. Among the possibilities in the immediate future using hot water include the following: introducing hydrogen to coal for easier liquefaction and cost reduction; add hydrogen to low quality oil deposits for better quality and easier extraction; increasing the efficiency of isopropyl alcohol production; breaking down petroleum based wastes to reduce environmental contamination.