Nanotechnology has the potential to introduce revolutionary change in the energy industries such as exploration, development and production. Nanotechnology can revolutionalise the additive properties by tuning particle characteristics to meet certain environmental, operational and technical requirements. Nanotechnology produces nanomaterials that are ultra fines in nature, usually smaller than ordinary micro particles and thus has very high specific surface area with enormous area of interactions.Recent research has indicated that nanomaterials have unique properties for a broad range of applications in the field of oilfield chemistry, where fluid loss control, borehole stability, cementing quality of a well, remediation of damaged reservoirs, hydrocarbon recovery efficiency, oilfield wastewater treatment are of interest. This paper presents an extensive literature review of assessing the applications of nanotechnology and nanomaterials in the field of oilfield chemistry, investigating the existing problems in the application of nanomaterials in oilfield chemistry, and evaluating the potential technical and economic benefits that nanotechnology and nanomaterials might provide to petroleum development and production. TX 75083-3836, U.S.A., fax +1-972-952-9435