In the oil and gas industry, depth in a well is the measurement, for any point in that well, of the distance between a reference point or elevation, and that point. It is the most common method of reference for locations in the well, and therefore, in oil industry speech, "depth" also refers to the location itself.

By extension, depth can refer to locations below, or distances from, a reference point or elevation, even when there is no well. In that sense, depth is a concept related to elevation, albeit in the opposite direction. Depth in a well is not necessarily measured vertically or along a straight line.

Because wells are not always drilled vertically, there may be two "depths" for every given point in a wellbore: the measured depth (MD) measured along the path of the borehole, and the true vertical depth (TVD), the absolute vertical distance between the datum and the point in the wellbore. In perfectly vertical wells, the TVD equals the MD; otherwise, the TVD is less than the MD measured from the same datum. Common datums used are ground level (GL), drilling rig floor (DF), Rotary table (RT), kelly bushing (KB or RKB) and mean sea level (MSL).