Hi,
I have to say I support the Reverends opinion here.
I have worked extensively with water and Oil Cooled Shaft Systems.
The water pressure generally keeps the Oil in where as the spray around the front of the stuffing box is a right pain to deal with if you can't nip it up for one reason or another.
There are also a range of fully bio degradable oils available for shafts and hydraulics today so spilling it in the sea is no longer a valid argument.
http://www.vickers-oil.com/marine_v2/index.php
These Oils are now being pushed at every opportunity I get.
I find resistance from some equipment manufacturers who have their own deals with Oil suppliers which I guess is to be expected.