(Note: I don't know if this has been suggested before, because the search is broken.)
Oil would generate at least one block below sea-level. If the block above it is broken, an oil stream will shoot up above the original oil block. The oil stream would be about 6 blocks high. A 6 x 6 area around the oil spill will have an oil coating, like snow on blocks. The oil will be slippery like ice. Any sheep in the 6 x 6 area will have their wool died black. To get the oil, the player would need to get a bucket and find the source oil block, and right-click, filling the bucket up with oil, stopping the stream.
Oil could be used for another burning source like wood or coal, but burn a lot longer. Or it could be used in lanterns, powered mine-carts, or to dye sheep.
Please, make suggestions. It would be awesome if someone could provide me with some kind of graphic.
... there have been many, MANY suggestions on this.
That doesn't necessarily mean that every version is the same.
And yes I agree on Oil, people should also be able to burn oil into plastic and make plastic items out of it. Also make oil flammable so you can pour it over a large forest and set it on fire if you need a clear area.
how the hell do you get plastic from oil? i like your idea for burning a large area >:biggrin.gif:
*Edit: also this is a crappy, short, and bad version of others