you are right, oil extraction is literally producing carbon (which is then processed and burned at later stage somewhere else)

so we need to separate: carbon production and carbon emissions.

a lot of so called decarbonized industries are decarbonized simply because they outsourced carbon intensive parts to third world, but carbon is still being produced and emitted.

I think this is why some people are supporting De-Growth movement, that just by reducing consumption of nonessential stuff, we would decrease carbon production and emissions globally