Does this represent a blown head gasket or something worse?

 

It usually represents a sloppy oil change.

 

The oil is actually in the socket. No oil has been poured, that I am aware of.

 

Spilled oil is the most likely cause. It is not head gasket.

 

Let me guess, bank 1... either plug 2 or 3? Yeah, what these guys said. Most likely spilled oil. Only other possible cause would be a valve cover gasket. Or a bad pcv valve seal which I have seen. Allows oil to spew out and run down the valve cover into the plug wells. The head gasket is below the plug, impossible for it to seep oil into the plug well.

 

Also possible that your sparkplug has loosened up and raw gas is being forced into the plug well from the bore. Coolant and gas can appear to be oil when it mixes with the dirt etc. in the plug well.

 

I had the #8 plug on my truck be cross threaded from the factory...last 145k miles...but for several thousand of those miles it had backed out enough to let gas exit and make a ticking sound. It actually sounded like the tick was in the bottom end. But when I had the plugs changed the guy said no more ticking...and the #8 plug was real loose and was all funky black in that area.

 

Thanks for the responses. I will check it out!