The correct statement is:
Oil is made from buried remains of plants and animals.
The other statements are not accurate. Oil is primarily composed of hydrocarbons, which are derived from the organic material (including plants and animals) that has been subjected to heat and pressure over millions of years. Here are brief clarifications for the other statements:
- Releases fewer toxins than natural gas: This is not necessarily true; natural gas generally releases fewer pollutants and greenhouse gases compared to oil when burned.
- Is made of a compound called methane: Methane is the primary component of natural gas, not oil. Oil consists of various hydrocarbon compounds.
- Only takes a few hundred years to form: Oil formation takes millions of years, not just a few hundred.