I am wondering if I have to reset my map, because of oil. Is it naturally spawned like buildcraft oil, because then I would have to reset my map for my server. How does it work?
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.
from my experience, oil spawns between levels 20 and 30. the reason the dropper is a "hit or miss" is because of a little bug where there needs to be a block under a non-running oil block so when i try to "harvest" oil i usually build a block and right click with the dropper and move on until you get as much oil you can or until it runs out hope this helps,