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that is water in the oil. could be old oil or gasket on head has gone check to see if there is a oily residue in the water container. if not do an oil change and check the torque on the head bolts and re tighten them. there is some stuff you can buy that repairs seal in the engine. something like stop leak. don't use thin oil. engine is old now and well warn in, 30/50 or 20/40 will do fine. but dont use 10 or 15. oil as it is to thin
This doesn't sound good. I would change the oil and get a report of what drained out. If it's milky sludge too, you have water getting into the oil.
Did the engine run hot? A blown head gasket could cause this oil in water issue. If that's the case, you may be in for an inspection of the engine to see what degree of damage if any... this is major. Don't let it go unattended.
Man, I hope I'm wrong. Good luck!
Sounds very much like your cooling system is full of ****. It would pay to have the cooling system flushed, including the radiator. If the sludge builds up it blocks the heater tap. This could also cause problems in regards to the cooling system as a whole, and potentially blow a head gasket. Check the color of the sludge. If it looks like a chocolate milkshake, it may denote a head gaset problem, and the sludge may actually be oil in the water.
In most cases, this will be due to restricted oil flow that can be caused by motor oil sludge build up. this will happen if you don't change your oil regularly for a long period of time. i would drop the oil pan and, have a look inside of the pan. if you notice a black gum or thick sludge build up on the bottom of the oil pan, this will confirm sludge build up in this engine. this is very bad and, it can keep the vital parts form receiving proper lubrication during run time.
This could also be bad rod bearings or worn crank shaft sleeves as well. main bearings could be worn also.
This sludge can ruin a engine very fast and, it is almost impossible to remove. if you are noticing any smoke coming form the tail pipe, this will confirm this.
I have a 1997 saturn 1.9sohc and I noticed a brown sludge seeping out of the water res , but no water on oil dipstick. Washed out the resivior with a hose running for 10 min and it got alot of the sludge out, but the next day I checked the fluid and there is a quarter inch of oil on top of the water. it is creamy brownish white . its not overheating or causeing any problems yet but I am worried and broke what shold I do?