That is a deep subject but basically debris and water are what kill the oil and it can usually be reconditioned. Water WILL damage stuff. Localized heating to over 212*F will cause cavitation of the water in some cases (depends on pressures).
there is also an additive package in oils that adds lubricity and rubber protection. Bad fluid can ruin seals and cause leaks everywhere.
The by product of over heated multi viscosity modifiers is sludge but usually it will just break down as hydro oil and become nothing but the base oil. So if you use 15-40, you will end up with straight 15W oil.
HOWEVER - lab testing is become more and more the standard as we run low on oils. A lab can check for additives, contaminates, and recommend ways to refurb the oil good as new. All big mining companies are doing this today.
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Today's Featured Article - Tuning-Up Your Tractor: Secondary Ignition Wires and Distributor - by Curtis Von Fange. In our last episode we spent the entire day checking out the spark plugs. Is that efficency? Actually, it took more time to explain than it really did to do the inspection. At any rate we decided that a compression test was in order so we could verify the internal engine status. That way we wouldn't buy any tune up parts until we were sure that the engine was in reasonable mechanical condition. Our tests showed a fictional compression reading of 85, 80, 82 and 86 psi. That is well within a
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