I can't comment on cutting a barrel with an oil residue that is unknown to me. However, I have cut more than thirty 275 gallon domestic oil tanks with an oxy-propane torch. I cut them length wise and use the halves to store coal and fire wood. They are also good for sorting and storing scrap metal.
They all have at least five gallons of sludge and liquid oil residue. Sometimes a fire about the size of a dinner plate will start. I zap it with a CO2 fire extinguisher thru the bung hole and continue. These are all fresh tanks recently taken out of service.
If your barrel blows up, I think it is safe to say that "your mileage may vary".
I never would have considered torching a tank until I talked to the burner at a fuel tank recyling facility. He had been doing it for years and never had an incident.
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Today's Featured Article - An Old-Time Tractor Demonstration - by Kim Pratt. Sam was born in rural Kansas in 1926. His dad was a hard-working farmer and the children worked hard everyday to help ends meet. In the rural area he grew up in, the highlight of the week was Saturday when many people took a break from their work to go to town. It was on one such Saturday in the early 1940's when Sam was 16 years old that he ended up in Dennison, Kansas to watch a demonstration of a new tractor being put on by a local dealer. It was an Allis-Chalmers tractor dealership,
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