The present mechanistic understanding and practical implications of carbon dioxide (CO2) corrosion of carbon and low-alloy steels in hydrocarbon production have been reviewed. This is based on the fact that CO2 corrosion is by far the most prevalent form of attack encountered in upstream operations. The intent of the review was to provide information on the mechanisms, highlight key parameters affecting its occurrence, and draw attention to areas requiring further research. The primary focus was placed on two key parameters affecting CO2 corrosion that had received little systematic attention, including the morphology, nature, and characteristics of the surface film and steel composition, microstructure, and finishing conditions. In addition, the role of environmental and hydrodynamic variables is briefly presented. The review has highlighted key areas of progress both mechanistically and industrially and has led to a number of key messages recommending areas for additional research to further the understanding of CO2 corrosion mechanisms to enable improved predictive capabilities for the effective use and deployment of carbon and low-alloy steels in oil and gas production.