The present work was undertaken: (1) to determine if CaO-partially stabilized $ZrO_2$ prepared by Hot Petroleum Drying Method would show better ionic conductor as an oxygen sensor in molten metals than that prepared by Oxide Wet Mixing Method and than CaO-fully stabilized $ZrO_2$, and (2) to understand the nature of conduction mechanism of CaO-partially stabilized $ZrO_2$ by a comparison of measured electrical conductivity data with theory on defect structure of pure monoclinic $ZrO_2$ and fully stabilized cubic $ZrO_2$. The DC electrical conductivity was measured by 3-probe technique and the AC electrical conductivity by 2-probe technique as a function of temperature in the range 973-1373 K and oxygen partial pressure in the range 10-1-10-25Mpa. The results of the experiments were as follows: 1. CaO-partially stabilized $ZrO_2$ prepared by Hot petroleum Drying Method showed at T=1094-1285 K and $Po_2$=10-7-10-25 MPa a nearly ionic conduction with 4 times higher conductivity than that prepared by Oxide Wet Mixing Method. 2. High-oxygen pressure conductivity tends toward a Po_2^{+1/5}-Po_2^{+1/6}$dependence. An analysis of possible defect structures suggests that CaO-partially stabilized $ZrO_2$ has an anti-Frenkel defect in which singly or doubly ionized oxygen interstitials and defect electrons predominate at T=1094-1285 K and $Po_2$=10-1-10-7MPa. 3. The activation energy for pure electron hole-conduction and ionic conduction of CaO-partially stabilized $ZrO_2$ was found to be 130 KJ/mol at T=973-1373 K, $Po_2$=2, 127 10-2 MPa(air) and 153KJ/mol at T=1094-1285 K respectively.