Oil out the exhaust?

Take a stiff peice of paper wave it around, under and behind that area of the turbo while shes running. Im betting you a clamp got loose and she's either asperating air where she should not be (Off the intercooler, if you lose a clamp there, you pull in outside air where it does not belong...)

Losing oil indicates the turbo itself is bad. It needs oil to run and stay alive in the hellish work. If you can wipe the area when engine is cold and then fire it for a few minutes to see if you can catch the actual oil coming out somehwere that will give you a clue.

Another thought is your coolant lines if any. You might have a pin leak spraying onto the engine or something causing oil to run making you think you gots a leak.

Something is leaking for sure. Don't go anywhere with that rig until you find it, nail it down and fix it.

 

Turbo is done.

 

If he runs it too long he could have a run-a-way on his hands. If the oil gets into the intake side then the engine will burn the oil as fuel it will run really fast until it blows apart or runs out of oil, then burns out.

 

Broken injector tip can cause excess fuel to drop from turbo area as well but like others say most likely turbo ..

 

Should this ever happen, grab your fire extinguisher and spray it into the intake. The CO2 will stop the combustion. Just don't stop until the engine quits turning over completely.

 

No. It starts using the engine oil as fuel rather than the diesel. Shutting the key off stops it from putting anymore fuel into the cylinder but it doesn't stop the engine oil from getting in there and that's all it needs to run. That's why it "runs away". Most guys just stand on the side of the road and watch it or grab their phones and make a video because they don't know what else to do. Every time someone brings it up I like mention the fire extinguisher trick just in case