Most businesses are feeling the impact of rising energy costs. As energy costs increase, it is becoming more important for plant owners to find ways to reduce energy consumption at their facilities. In addition, the stricter environmental regulations and ambitious emission reduction goals of various countries are driving businesses toward more energy-efficient solutions. This paper discusses the vital role that optimal design and application of Trace Heating Systems plays in reducing their energy consumption. This paper presents a case study where an existing trace heating design is optimized to reduce energy consumption by 91%. Energy conservation strategies implemented include selection of an improved insulation system, a control and monitoring strategy, the appropriate trace heating technology, optimal trace heating designs, and the best power distribution option. The results of this paper are important tools to evaluate opportunities to save energy in both existing and new trace heating installations found at many industrial facilities and to reduce total operating costs.