Hyperspectral remote sensing involves the collection of reflected and emitted solar energy from the earth's surface in a large number of bands or channels. Typically, this wavelength range extends from the ultraviolet (UV) through the visible (VIS), infrared (IR) and microwave regions of the electromagnetic spectrum. Since all exposed ground materials have a characteristic spectral response or "signature" to the incident radiation, hyperspectral imaging allows for more precise identification and evaluation of the targeted land cover. Alto Technology Resources has developed an airborne hyperspectral imaging spectrometer that circumvents many of the problems associated with current sensors. This state-of-the- art scanner collects data in a very large number (>200) of channels throughout the UV, VIS and IR portions of the electromagnetic spectrum, taking special advantage of the thermal IR and an integrated synthetic aperture radar (SAR). This provides unparalleled spectral resolution and interpretation capabilities. All spectrometer band centers and bandwidths are selected for specific applications and the spectral data are fully calibrated. The system control uses an on-board workstation to provide real-time data monitoring and georeferencing. The imaging spectrometer is mounted on a fully stabilized platform. The recording system is flexible and expandable. The Alto hyperspectral sensor has been successfully tested and used in several missions involving upstream and downstream operations. This paper briefly discusses the fundamentals of the various types of remote sensing and presents examples of the application of hyperspectral imaging in hydrocarbon exploration and exploitation operations. Among the upstream examples to be discussed include identification of structural traps and outcrop lithology and onshore and offshore oil seep detection. In downstream operations, it has been used to monitor an underground pipeline for hydrocarbon leaks, perform environmental assessments at refineries, pipelines and oilfields, monitor a remediation site and assist in pipeline routing.