Carbon-based nanomaterials have received heightened global interest by petroleum researchers because of their abundant stocks of necessary raw materials, ease of size control, readiness for modification, and high stability. In light of the practical demand for oil development, this study reviews the recent progress in the research of enhancing oil recovery using carbon-based nanomaterials of various dimensions, including carbon dots, carbon nanotubes, carbon nanofibers, and graphene and its derivatives. Moreover, the study elaborates on the application of these materials in high-efficiency oil displacement, profile control and water shutoff, as well as the fracturing process. The related challenges and solutions in practical oil exploration and development are analyzed, and the application prospects of these materials in future oil reservoirs and oilfields are predicted. This review provides valuable theoretical and experimental references for the large-scale application of carbon-based nanomaterials.