Amberino does actually have built up settlements. There’s actually a much larger northern part of the state however this is only alluded to in the game and not actually seen. What we see is the foothills of the state right on the border. Some of the gang mention that they have come from North Amberino into black water before the game’s events. Also the bounty proclamation for one of the targets in online says it comes from the governor of Amberino which would be odd for a state with nothing there to have a formal governing body (not to mention having a state flag AND motto).
Also to address the issue of the oil tycoons, it is discovered between chapter 6 and the epilogue that the amount of oil Cornwall was trying to displace the natives for was actually minimal and dried up rather quickly, giving zero incentive to continue drilling