Maybe if you're planning for 3+ months off the grid it becomes a bad idea, but I don't think there are many scenarios where we're off the grid for 3+ months and then society comes back in any meaningful way (e.g. more than 1% of population alive, electricity again).
On the other hand, I had to chug oil (on a dare) before and it was easily one of the worst experiences of my life. The aftertaste and slime lingered for hours and I felt ill for days. If I had to drink any more, I doubt I would've been able to keep it down at all, and would probably end up vomiting and getting dehydrated...
But you know what, mix that oil with some grains and sugar and whatever nuts or seeds you have and you'd probably end up with some very tasty cookies or bars. I once did a multi-day backpacking trip eating nothing but Clif bars every meal... wasn't great, and I never ate Clif bars again after that, but at least I didn't feel suicidal after every meal.