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Many layers of rock and sedimentary material containing fossils can be seen on the bluffs in and around Oil City. Oil City is framed by the surrounding foothills with the Allegheny River winding through downtown.
The Allegheny River and Oil Creek freeze occasionally during the winter, sometimes causing ice jams ; although remediation by the U.S. Army Corps of Engineers has reduced ice formation via a floating ice control structure on the river and a fixed concrete weir on the banks of the creek. Flooding of the river flats is a possibility throughout the year due to ice jams, excessive snow melt, large volume storms and hurricane or tropical storm remnants.