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Engine oil spills arent as uncommon as you might think; in fact many engines have a certain amount of the stuff where they shouldnt. Seal and gasket leaks and accidental spills during filling happen every day, and rarely to they result in any major catastrophe.
Oil Basics
Even synthetic motor oils are mostly mineral oil by volume, which means that they operate like most other hydrocarbons when exposed to enough heat. Motor oil will burn just like gasoline or kerosene; it just burns much slower and requires higher temperatures to ignite. Generally speaking, the flashpoint for motor oil (the temperature at which it vaporizes to form an ignitable gas) falls between 390 and 400 degrees Fahrenheit; autoignition temperature (the temperature at which it will catch fire without another ignition source) for such heavy oil lands at about 750 degrees.
Consequences of a Spill
If the motor oil lands on something that exceeds its flashpoint, itll just smoke and form an ignitable gas. However, this gas requires the presence of an open flame, and will more than likely go out if the flame does. Odds are best that the oil wont ignite unless it touches the exhaust manifold or catalytic converter, and even then theres no guarantee that those surfaces will exceed its autoignition temperature.
What to Do
If you can wipe the oil off or soak it up with a rag, then thats preferable to just letting it sit there and solidify into sludge. A little soap and dish detergent will take car of the residue, provided that you can get to it. If you cant get to the oil spill, then keep a fire extinguisher handy and start the car. Allow it to idle with the hood up and burn away the oil while you keep watch.
