fwiw where I live in Los Angeles we have actual operational oil derricks right in the middle of residential neighborhoods but it's nearly impossible to build apartment buildings.

https://www.theatlantic.com/photo/2014/08/the-urban-oil-fiel...

If zoning can't prevent the heaviest of heavy industries from sharing space with schools and playgrounds then I don't see why keeping it around to kill new housing projects is so useful.