That is a deep subject but basically debris and water are what kill the oil and it can usually be reconditioned. Water WILL damage stuff. Localized heating to over 212*F will cause cavitation of the water in some cases (depends on pressures).
there is also an additive package in oils that adds lubricity and rubber protection. Bad fluid can ruin seals and cause leaks everywhere.
The by product of over heated multi viscosity modifiers is sludge but usually it will just break down as hydro oil and become nothing but the base oil. So if you use 15-40, you will end up with straight 15W oil.
HOWEVER - lab testing is become more and more the standard as we run low on oils. A lab can check for additives, contaminates, and recommend ways to refurb the oil good as new. All big mining companies are doing this today.
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Today's Featured Article - Restoration Story: Fordson Major - by Anthony West. George bought his Fordson Major from a an implement sale about 18 years ago for £200.00 (UK). There is no known history regarding its origins or what service it had done, but the following work was undertaken alone to bring it up to show standard. From the engine number, it was found that this Major was produced late 1946. It was almost complete but had various parts that would definitely need replacing.
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