Graphene and its derivatives, with their unique two-dimensional structures and excellent physical and chemical properties, have been an international research hotspot both in the research community and industry. However, in application-oriented research in the oil and gas industry they have only drawn attention in the past several years. Their excellent optical, electrical, thermal and mechanical performance make them great candidates for use in oil and gas exploration, drilling, production, and transportation. Combined with the actual requirements for well working fluids, chemical enhanced oil recovery, heavy oil recovery, profile control and water shutoff, tracers, oily wastewater treatment, pipeline corrosion prevention treatment, and tools and apparatus, etc., this paper introduces the behavior in water and toxicity to organisms of graphene and its derivatives in detail, and comprehensively reviews the research progress of graphene materials in the upstream oil and gas industry. Based on this, suggestions were put forward for the future research. This work is useful to the in-depth mechanism research and application scope broadening research in the upstream oil and gas industry.