Oil is not a great cooling medium. Oil retains too much heat. Suzuki tried in their early GSXR motorcycles where oil was sprayed under the pistons. While it did work OK, they realized that water cooling was the only way to go. Porsche had an oil cooler in the nose of the RSR types and an oil reservoir in the RR fender had something like 7 gallons of it slinging around. It was a dry sump system where very little oil in contained within the engine. Porsche uses water cooled heads and air cooled cylinders on their race cars. I think water is still the way to go.
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