Liquids make excellent insulating materials due to their high density and heat transfer capabilities compared to gases. Common liquid insulators include transformer oils, silicone oils, and liquid nitrogen. While liquids can withstand very high dielectric strengths in theory, impurities like water, dust, ions, and dissolved gases reduce their actual breakdown strength. Liquids are useful as insulators in high voltage cables, capacitors, transformers, and circuit breakers, where they also act as coolants. The presence of even 0.01% water in oil can reduce its dielectric strength by 80%.