Is it forbidden to use oil and its derivatives because of their harm to the environment, in accordance with the Hadith: "There should be no harm or reciprocating harm," or does the matter fall to the ruler to decide what is most appropriate?

In these matters, reference should be made to the rulers and competent authorities. If the benefit of extracting minerals outweighs the harm, then they should be extracted while striving to دفع (avert) the harm. Scholars prioritize the preponderant benefit over averting a minor harm when the two conflict. If benefits and harms converge, and it is possible to achieve the benefits and avert the harms, then that should be done. Otherwise, if the harm is greater than the benefit, the harm should be averted. And if the benefit is greater, the benefit should be realized despite the accompanying harm. Islamic Sharia came to achieve and perfect benefits, and to nullify and minimize harms, while preserving the five necessities, and promoting ease and removing hardship.