I'm not finding a wiring diagram for this specific oil derrick. According to Lionel's Products Site, using the provided 682016 model number, this is/was Plug and Play, maybe with it's original plug removed.
However in general, wiring Lionel Plug and Play accessories that have just lights and/or a motor, only the Red and Black wires are connected to a 12 to 18 volt AC or DC power source. The White wire can be left disconnected.