If we go with the nuclear-reactor style machine, what would happen if a single part of the machine broke? Would the entire machine explode? Or would it just create smoke particles and stop working? Maybe certain components like transformers and energy storage increase the chance of an explosion if a component fails.
I think simple machine shouldn't explode, just breaks and being replaced by machine block/destroying their internal components, what I would prefer.
On the subject of oil: I'd love to see oil cells as a way to slow down the wear-and-tear of components that it touches. With better, upgraded oil refining equipment, the player could then get better grades of oil that better protect against wear-and-tear.
I like it too: The system to be continuously feeded by Oil would be very complicated/a bit expensive, but at the end, it would make you save energy (the energy consumed by the machine would be smaller than the energy saved by usage of Oiling), save component and make machine running faster, but you would have to find a way of producing Oil, so using a lot of Gas/BC-Oil, what could create amazing Oil-Company! (Please, do not affect the environment with that Oil on sea).