Some aftermarket air filters (like K&E) are designed to be sprayed with oil.
The oil is usually a reddish color. But it's likely that you have a stock
air filter setup and the filer has gotten oily from the crankcase breather
that recirculates crankcase vapors back through the intake system. I would
clean the filter housing, change the air filter, and check it periodically
to see if it gets oily again.

-Mark McCulley

At 01:58 PM 3/4/98 -0500, Muffley, Shane, SITS wrote:
>Bare with me...I'm a new (and very happy) 1982 Vanagon L Westy owner...
>
>My engine looks/runs/sounds great and recently had a COMPLETE overhaul
>for which I have some questions about what exactly was done.  First,
>however, I would like to know why my air filter is black and "appears"
>as if was soaked in oil?  The engine idles high (1000rpm), but other
>than that it seems to run in PERFECT condition.  The oil level is
>halfway between min and max.  I'll put a list of what was done to the
>engine and maybe someone could tell me what it all means and what may be
>missing.
>
>THANKS for any help.  Just curious about the air filter.
>