Blarg: that's what a pan, a funnell and a 55 gallon drum is for. we stow all our used oil in drums. apparently, there's someone out there that burns OIL oil (not deisel) in his furnace.
and I'd get everything swapped on that engine, PRONTO. that much age on wires is a no-no. one of mine was arcing off the #1 wire onto a tension brace in one of mine no wonder my computer fried