Fuel isn't bugged. It's always been an incredible power source, and the reason I love using combustion engines.
The smallest oil springs contain around 300-400 buckets of oil. Remember that Railcraft tanks show mB, and 1,000 mB = 1 bucket.
Really large oil springs are exceptionally rare, but there have been records of some with geysirs over 30 blocks tall. These springs will hold over 10,000 buckets of oil.
A bucket of refined fuel will yield 600,000 MJ in a combustion engine; in other words, each bucket of fuel is worth an entire redstone energy cell.
Why is it so powerful? Because it's a limited, non-renewable resource. It's balanced against the fact that there are weaker fuels which you can generate out of thin air with no effort. Finding oil, however, requires effort, and it won't last forever, so it better be good.