Oil was formed from the remains of animals and plants that lived millions of years ago in a marine environment. Over the years, the remains were covered by layers of mud, while heat and pressure from these layers helped the remains turn into what we today call Crude Oil . The word "petroleum" means "rock oil" or "oil from the earth."
http://www.eia.doe.gov/kids/energyfacts/sources/non-renewable/oil.html

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