What is this and should it be leaking?

KYJeep11

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Sorry for the ignorance, but I was crawling around under the Jeep today ('03 TJR) and noticed this. Anything to be concerned about?

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Most will say it's the rear main seal but a good starting point can be the valve cover gasket that can leak down the rear of the engine. If you're so inclined clean the rear of the head and keep an eye on it for a few days. Also could try re-tightening the the series of bolts around the valve cover.
 
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Should be able to tell if it's gear oil. Mine leaks and looks just like yours. Mine is gear oil from transmission. Figure it's the front tramission seal.

Sent from my VS988 using Tapatalk
 
It could also be the back of the oil pan gasket. That’s what it was in my case. Once getting the pan off I could see the oil pan gasket was torn a little and causing the leak.

Start with the valve cover though like others have said. It a lot easier. Hopefully that’s it.
 
Sorry for the ignorance, but I was crawling around under the Jeep today ('03 TJR) and noticed this. Anything to be concerned about?

Valve cover or rear main seal, that is nothing to be concerned about. Most Jeeps leak some oil.

I've had a much larger one for more than 50,000 miles now. It keeps the rear half of my Jeep rust free. If you have to add oil between changes or if you park some place it is an issue you might consider taking care of it.
 
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Should be able to tell if it's gear oil. Mine leaks and looks just like yours. Mine is gear oil from transmission. Figure it's the front tramission seal.

Sent from my VS988 using Tapatalk
That doesn’t make sense for transmission fluid to travel up there, assuming it’s a manual, that’s where the clutch/flywheel is, no transmission fluid in there. Both jeeps I’ve owned have leaked like that, it’s not a big deal, it’s just little droplets of oil.
 
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Should be able to tell if it's gear oil. Mine leaks and looks just like yours. Mine is gear oil from transmission. Figure it's the front tramission seal.

Sent from my VS988 using Tapatalk

Maybe a silly question, but how do you tell the difference? I have the same leak in my '03 and I've just assumed it was motor oil. Now you've got me wondering...
 
Is it bad that when I read the thread title my first thought was “that’s what she said?”