It does spawn. I too had issue trying to find it. But Yes, walk, VERY , VERY Far!! I found a Abandoned Mine, and found some oil. There seem to be bug, on trying to get it. The dropper is hit and miss.
Minecraft Username: Captproton17
Age: 40 ish
Country: USA
Do you swear a lot?: no, if i did, I wouldn't do it online.
Have you ever griefed?: never, it not in my nature
Are you mature?: I think age say it, But I still play Video Game, and Still Buy animated Dolls.
How do you like to play...