First you need to get oil, the oil can be gotten from extractors (More on extractors in Extractor page).
When extractor is setup you need to get the oil received and smelt that in a furnace, this will be turned into LQ Evaporated Oil ( LQ is short for low quantity ).
From here you needed an upgrade crafting table called an industrial workbench ( which you should already have from crafting an extractor ).
In this industrial workbench you will need to craft a gas can, this is crafted from one LQ Evaporated Oil and one flower pot in a shapeless recipe.
Once you have the gas can from the craft you need to place a generator (More on generators in Generator page).
In the generator place your gas can in the fuel slot (bottom slot), wait up to a few seconds and it should have converted your gas can into energy. When burning a gas barrel, it gives 9x the energy a gas can gives.
Energy and oil will have many uses on this server. For now though it is pretty limited.
Red stone Lamps, red stone lamps are powered on placement and require 0 messy cabling. You can also turn off the lights at any moment of time by right clicking in their direction when not interfered by a block.
Fueling vehicles. A major use of oil will be to fuel cars, airplanes, and more.
Future Uses of Energy
All lighting fixtures other than flashlights will eventually consume electricity.
The war plugin will use energy at large when firing rockets, making rockets, etc.
Linking them to future industrialization and forging plugins to come replacing basic crafting.