The good news is, the oil wasn't milkshakey, no froth, no foam. Just rusty brown like the stain I saw inside, but still looked like oil.
Bought the compressor used off Craigslist but it looked mighty clean and lightly, if at all, used. It was two or three years old at the time, I'm guessing.
I've used it a bit but not oodles, in the past year I've had it.
Other issues:
I installed a 90 degree bend/pipe/ball valve drain on the bottom of it and always blow out the water at the end of a day where I've used it. I've always gotten nothing but water mist.
Lately, I've occasionally gotten dark gray/black oil in the mix. Looking back, I think it happened on days when I was using my grinders and it ran a lot. Also, there's a small oil leak somewhere on outside the motor that I er, haven't looked into, but hasn't been happening lately, just as I've not had oil out the bottom in the past two weeks. The fan seems to blow the leak from the front of the motor.
Recommended tools are listed on a sticker/chart on the tank of this compressor, and air sanders and grinders and other high volume things aren't recommended -- but I bet lots of folks are getting away with it. And I wasn't doing that much grinding. What happens if you make a compressor motor work too hard? (It's not like I went hard for an hour on it. Maybe 10, 15 minutes, and still, some pauses in the work, I'm sure it caught up and didn't run constantly.)
I just figured, not having changed the oil since I've bought it, I could start off with clean oil and see if that helps. But yeah, removing the fan belt sheet metal cage and inspecting the entire motor and the crank seal are high up the to-do list.