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 - Hydraulics - Cylinder Anatomy - by Curtis von Fange. Let’s make one more addition to our series on hydraulics. I’ve noticed a few questions in the comment section that could pertain to hydraulic cylinders so I thought we could take a short look at this real workhorse of the circuit. Cylinders are the reason for the hydraulic circuit. They take the fluid power delivered from the pump and magically change it into mechanical power. There are many types of cylinders that one might run across on a farm scenario. Each one could take a chapter in
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