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Great questions! Thanks for asking them!
1- You are correct. Oil Wells currently must be placed on a ground level tiles in order to produce. They belong to sub-class of tiles that require ground access, and we're working on making this clearer in future updates. The restriction is meant to simulate how an actual Oil Well would work and where it's pulling its resource from.
2- The main disadvantage of letting a corridor decay (since it does not provide any resources) is loss of access. Most blocks in the game require access in order to produce, and if they are only connected to decayed tiles, they will have no access and won't be able to produce.
3- The soil system of block'hood is still being developed so currently no blocks 'require' it, however it may be part of a larger system in a future update. For right now, the Soil block is mainly a way to fill out space and/or landscape your 'hood.
Hope that helps, and if you have any other questions/comments feel free to post them!