In Starbound, there are many new things introduced into the game in the Nightly builds (for the upcoming Winter update). One of which is many changes to progression...
I'm up to a part where you're meant of craft Steel. Except Steel is not crafted from a Metalworking Station (made of 1 Iron + 1 Coal). Instead, it is made from an alloy furnace using 3 Oil + 1 Iron.
Iron is plentiful for me; I can find them easily by digging further down into the surface of a planet. But I've haven't come across any signs of oil.
Question: Where does oil commonly spawn?
Is there a minimum planet treat "level" (not a number) or is it tied to specific biomes? Or what?