TL;DR, ok?
That would be the first time I ever saw engine oil burning a car.
Back in the early 1970s I had a 67 Chevy II which had a really powerful 327ci engine. 12.5/1 pistons, steel crank, pink rods, Phase III Z28 cam, aluminum intake with an 800 Holly double pumper carb, 300 double hump chevy heads with zero rocker arms, orange GM springs and a 3 angle valve job. Behind it was a 40lb flywheel, purple, Zoom pressure plate, clutch and a lakewood blowproof bell housing. Behind that was a super T10 Borg Warner trans w/ a 264 low gear.
Behind that was a BW power brute u joint, stock drive shaft with a safety loop then another power brute u joint. The rear diff was a 12 chevy with a 5.13/1 gear and pinion. AP headers made by JC Penny because no one else made headers for the car other than fenderwells for which I would not cut into the unibody frame.
The owner of a Vette smarted off to me on Friday night in front of a group of fine women and I told him I'd blow all four doors off that snail he drove. He couldn't back down so we line em up on a ~2 mi straight hwy between Harriman, TN and Oliver Springs.
My BNL who was going to flag and sent his wife to mark off a quarter mile. Off we went, I didn't even remove my headers. I did a 4k hole shot because he wouldn't let me put my 9" wrinklewalls on my car. When I hit second gear I hooked up and left that stock vette like it was sitting still. No, more like reverse. Some long tim after I hit 4th gear turning about 7200 rpm I realized I was chasing a pair of tail lights which were moving.
Three things had happened. My sister in law had turn around to go back and find out how to measure a quarter mile on an odometer, after we had adjusted the poly locks on the tip of the rocker arms my BNL who was tasked with the valve cover replacement on the left bank had put the new gasket on so that the rear didn't seal and the engine oil was pouring out onto the header on that side. I lost a qt of oil and most of it went to smoke on the left header sticking out of a small block chevy engine which had just run a mile wide open at 7200 rpm over 3/4th of that mile.
So no. there's no way the oil would have ignited from exhaust. Maybe a hot cat converter but not normal engine exhaust.
If anyone has seen [with their own eyes} oil start a fire by leaking out of an engine and pouring on exhaust please inform us so I can withdraw my, 'It ain't happened,' opinion.
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