[QUOTE=cheshired5;2546186]My money would be on the turbo seal leaking allowing oil into the air intake.
Large quantities of oil in the engine can be catastrophic as the engine can end up combusting the oil uncontrollably and effectively blow itself up.
Good answer , but you got the wrong side of the turbo . smoke & dripping oil is always a sign the bearing/seal on the exhaust side has failed . IF it was on the compressor side it would be grey / black smoke & the engine as you rightly note would enjoy a free diet of engine oil it could burn as fuel , leading to a runaway engine .
Bottom line the turbo requires replacing & maybe the exhaust due to oil contamination , as it will smoke for a long long time after repair
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