Thanks for all the replies. You have confirmed what I thought all along. Not sure why my bud didn't just spray on some cheap rattle can primer to keep down the surface rust, would have been much easy to deal with when the time comes. Besides that, all the parts are kept in a storage shed so it isn't like they were outside where they would be getting wet.
When I first found out that he was putting this oil on the parts, I told him that it was a bad idea. Now we will have to spend a lot of time getting the mess off. :mad: