Because I keep forgetting this trick, I'm documenting it here so I don't forget. To install ruby-oci8 on Ubuntu (and possibly other unixy platforms) do this:
sudo env ORACLE_HOME=$ORACLE_HOME gem install ruby-oci8 -v 1.0.7
Drop the "-v 1.0.7" if you want the latest version of ruby-oci8, but keep in mind that the latest version is in the 2.x range
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