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Oil is a fossil fuel.
Just as Coal is the remains of land plants that have been covered over by sand and then squashed into rock, Oil is formed from the remains of microscopic sea plants and sea creatures that died and fell to the floor of the ocean, there to be incorporated into the sediments.
Over time, as these sediments are squashed and heated, the remains get changed into oil which flows through these rocks towards the surface until it becomes trapped against a layer of rocks through which it can not flow.
In this situation it accumulates (in the spaces between the mineral grains of the rocks) beneath the trap rocks, forming an 'oil field'.
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