Wavelet transforms are a family of basis functions that separate a function of a signal into distinct frequency packets that are localized in the time domain. Thus, wavelets are well suited for analyzing nonstationary data. It can smooth the basic signals and keep and even enhance of details. So it provides a multiresolution framework for data representation.Wavelet transform is now used in a wide variety of applications in the areas of medicine, biology, data compression, etc. In recent years, wavelet analysis is increasingly applied to the data analysis in petroleum industry. This paper reviews the recent application of the wavelet transform methodologies to data analysis in petroleum industry, especially the application in reservoir engineering fields. Various field examples are provided to demonstrate the applications of wavelet transform in petroleum industry, especially in the areas of well testing, well logging, seismic, and petroleum geology.