In this paper we present a review of the application of two types of magnetic sensors-fluxgate magnetometers and nuclear magnetic resonance (NMR) sensors-in the oil/gas industry. These magnetic sensors play a critical role in drilling wells safely, accurately and efficiently into a target reservoir zone by providing directional data of the well and acquiring information about the surrounding geological formations. Research into magnetic sensors for oil/gas drilling has not been explored by researchers to the same extent as other applications, such as biomedical, magnetic storage and automotive/aerospace applications. Therefore, this paper aims to serve as an opportunity for researchers to truly understand how magnetic sensors can be used in a downhole environment and to provide fertile ground for research and development in this area. A look ahead, discussing other magnetic sensor technologies that can potentially be used in the oil/gas industry is presented, and what is still needed in order deploy them in the field is also addressed.