With the increased attention toward nanotechnology and their innovative use for different industries including but not limited to food, biomedical, electronics, materials, etc, the application of nanotechnology or nanoparticles in the oil and gas industry is a subject undergoing intense study by major oil companies, which is reflected through the huge amount of funds invested on the research and development, with respect to the nanotechnology. Nanotechnology has been recently investigated extensively for different applications in the oil and gas industry such as drilling fluids and enhanced oil recovery in addition to other applications including cementing and well stimulation. In this paper, comprehensive literature was conducted to review the different applications of nanotechnology in the oil and gas industry. A summary of all nanoparticles used along with a detailed analysis of their performance in improving the targeted parameters is comprehensively presented. The main objective of this review was to provide a comprehensive summary of the different successful applications of nanotechnology and its associated challenges, which could be very helpful for future researches and applications.