The bottom of the element is in contact with the oil, which wicks its way up and saturates the element. It is extremely effective for filtering small particles as they stick to the oil soaked element. The gunk will also run down the element and settle in the bottom of the pan. In Wyoming, where it is very dusty, you won't find a farmer who doesn't have them on their old trucks or tractors. BTW, I've been told that the straw-like looking element in my filter could be hair from the mane of a horse. I've never verified if that is true.
