Oil gets dirty very quick

The color of the oil isn't the issue. It's the amount of gunk it's picking up in such a short time coupled with lifter noise.

I poured in 1/3 bottle of ceratec last night with my fresh oil. Curious to see if that makes any difference.

I'm not expecting anything from the ceratec.

I will say that with the fresh oil, the engine ran much quieter and smoother. Very noticeable difference .

I'll probably pull the heads And do the lifters when I finish my other car project in a couple weeks or so. But, in the meantime, I'll play around with some oil additives. Simply out of curiosity.
It sounds like the engine wasn't properly maintained (long OCIs and/or wrong oil). I would go the slow and steady path when it comes to cleaning the engine:
- frequent oil+fliter changes
- use of a mild engine cleaner
 
The difference is incredible
I agree. Fortunately my engines are not in need of this product. If anything, I could be found guilty of excessive oil and filter changes. But if I ever purchased a used vehicle that didn't receive such TLC in the oil change department, I would use this product unhesitatingly.

I don't see a downside other than cost. And the way the product appears to work, it's worth it.
 
Just keep doing what your doing. If it is sludged up you don want it all comming loose on one oil change or the filter will clog up.

I would use Mobil 1 HM
That's what I use in my 2003 5.3
 
First I would check the air filter and engine air intake system for holes or cracks. You need clear air into the engine.

Then I would use NAPA or SuperTech (decent but low cost) synthetic oil and change the oil and filter at 5K. Do a NAPA UOA, only $16.

Cut open filter.

Drop the pan, clean it and the oil pump screen. Replace the pickup o-ring as others have mentioned

BITOG members thrive on pictures and UOA. Please do the needful.
 
Here is another video showing the use of the BG Engine Flush Kit. Showing both before and after results. Again, it's a bit long, but you can skip your way through it to see what you need.

The only thing I would be a bit concerned about, is it requires running your engine with the vehicle parked, revving at 3,000 RPM for a half hour. Then again for 20 minutes with the, "rinse oil". That generates a LOT of heat. Perhaps that is required for this stuff to work properly, I don't know.

 
Question is (If I missed it) does the drained oil have sludge in it or is it JUST dark? Lots of oils will tell you that the oil may turn dark very soon after an oil change and that does not mean something is wrong. Yours does sound like a case of bad neglect before you took it over.
Keep doing what you are. If it doesnt clear up I would do what somone said. Hit it with a quart of MMO and see if that knocks some more gunk out or what happens. MMO has a long history of cleaning things. Likely over 50% of folks on BITOG have used it at some time in the past.
 
This video on the BG Dynamic Engine Flush mentioned the stuff would chemically burn your hands if you got it on you. And that it would eat right through a cloth rag. (3:30 to 4:30). Sounds like some pretty strong stuff.

I can't help but wonder what kind of lubricating qualities it has, in order to provide proper lubrication for an engine that is free wheeling at 3,000 RPM for a half hour at high temperature?

 
Isn't there an updated valve cover for the earlier LS engines? I think it was related to oil consumption through the crankcase ventilation system, but I wonder if you somehow have PCV issues even though there's no PCV valve.
 
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