The local effect of extractive industries on households’ living standards is viewed in this study as a signal of non-homothetic preferences for education. Previous evidence suggests that resource booms have a positive effect on labor outcomes that further translate into a reduction of poverty in the local population. In contrast to artisanal mining, hydrocarbon-based industries are intensive in high-skilled labor; we predict that further development could increase investment in education but have ambiguous implications on demand in sectors that improve the local welfare. Using annual household data from the Niger Delta between 2010 to 2016, we employ a geographic triple–differences (DDD) estimation that exploits spatial and temporal variation in oil production and locations. We find that costs of living are higher by proximity to oil fields but find that the mechanism is via non-homothetic preferences for education. We find inconclusive evidence on other welfare indicators; limited employment opportunities in non-oil sectors may explain the weak backward linkages and potential positive spillovers. JEL Codes: O13, O18, Q32, J24, I2, R20