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AbstractWavelet is first introduced by Alfred Haar in 1910, but the development of wavelet was very slow until the middle of 1980s. In 1984, Jean Morlet made the wavelet rebirth by developing a new way of analyzing the seismic signals to overcome the deficiencies in the Fourier method. Since then, the new developments of wavelets have fascinated the scientific and engineering communities.A wavelet is a waveform of effectively limited duration that has an average value of zero and wavelets are a family of basis functions, which can separate a signal into distinct frequency packets that are localized in the time domain. Thus, wavelets are well suited to analyze nonstationary data. They can smooth the basic signals and keep the details of basic signals. Therefore, they provide a multiresolution framework for data representation.Wavelet analysis is a rapidly developing area in many disciplines of science and engineering and it is used in a wide variety of applications in the areas of medicine, biology, data compression, etc. In recent years, wavelet analysis has found its application in the petroleum industry. This paper reviews the recent application of wavelet analysis in the industry.Various application examples are discussed, especially the examples in the areas of reservoir characterization, geological model upscaling, and well testing. simple digital filter ideas, shown in Fig.1. Thanks to Daubechies' work, wavelet transform has been widely used in many fields such as pattern recognition, image compression, mechanical fault diagnostic, signal de-noising, signal compression, earthquake diction, and other areas since 1990s.