I recently installed a brand new 4.6l engine in my 97 ford thunderbird. I blew the original engine due to low oil. I thought the oil pump was bad because the car would have a very rough time accelerating especially uphill. When I would get to about 20-25 mph it would accelerate smoothly. Now that I have installed the new engine I know it's not the oil pump. Oil is leaking a lot from the sending unit when the engine is full of oil but it drops about 2 quarts and stops leaking. I replaced the sending unit twice but it still leaks majorly. I am getting only one code which is p1131. When I installed the housing for the oil sending unit and oil filter, I added a little bit of gasket sealer to the gasket and was thinking that may be the cause of the leak, but I don't think it is leaking from the housing, it looks like it's coming straight from the sending unit. I did put Teflon tape on the threads but maybe I applied it incorrectly or didn't put enough??
My old unit did have red thread sealer on it but the new replacement did not have anything just bare threads. That's why I put the Teflon tape
Check for a hair line crack in the aluminum housing where the sending unit threads in. Maybe just above the sensor or at the joint where it's hard to see. Those aluminum housings get brittle with age and can easily crack if the sensor is over tightened. I would be careful with a new one as well quite honestly.....
The Teflon tape may have been the straw that broke the camels back. As I recall the sensors come with red thread sealer and don't need anything else.
Correction. It's blue thread sealer not red. The sensors don't get screwed all the way in to the stop. Only go about 2/3 of the way, enough to cover most but not all of the thread sealer. If the threads seep you can always tighten a little more but going to far can split the housing.
Sounds like u have your answer (new sending unit needed)
Get a sending unit from a local parts store with a limited, lifetime warranty in case it's defective.
PS - They have pipe threads and are tapered. Go easy tightening it into position.
I see. Is the housing new or old? Have you checked for a crack? I hope you didn't over tighten, it doesn't take much.