Disclosed is a method for removing sludge in a crude oil storage tank by use of thermal oil discharged from a distillation tower of an oil refinery, such as atmospheric residue, vacuum residue, or vacuum gas oil, and recovering oil having various applications by separating inorganics therefrom. The method is advantageous in terms of minimizing air pollution because of utilizing a closed system, drastically reduced washing time of crude oil storage tank, and continuous removal of the sludge. Additionally, the recovered oil can be provided as fuel oil, marine oil or a feed for secondary treatment processes, such as up-grading processes of heavy oil.