Yes - probably more rolling element bearings are damaged by over greasing than any other cause. A motor deep groove bearing temperature rises about 30 degC during the regreasing process and substantially more if over greased.
Hi Edor. Oil is viscous and is designed to coat engine components long enough to remove heat and reduce friction. However this process requires power and that consumption of power produces heat.
Oil levels are designed to provide an adequate reservoir to allow some losses to consumption and seepage. Overfilling a reservoir may cause the oil levels to interfere with the rotating components of the engine. More power must be produced to 'churn' this oil causing the engine to produce more heat.
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In addition, depending on the model of the engine, excess oil level can lead to foam due to interference to moving parts, failure in flow and sometimes in lack of oil pump feeding.
Yes! Air is an insulator, compared to liquid oil. Tiny bubbles introduced by the crankshaft churning the oil into foam, as bhrescobar described, will decrease heat transfer into the oil and decrease lubricating efficiency of the oil, as well.
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