...OK here we go: In my hunt to solve my car's oil consumption , I decided to check the cylinder compression again. Of course everything looked good. So, since I didn't have anything better to do, I pulled the valve cover off the check on the retainers. So here is my dumb question: I know there is supposed to oil in this area, besides it's where you put it, but everything was swimming in oil.
I pulled the valve cover off before, and I don't recall seeing so much oil! I checked the PCV valve and it seems to work OK. Is it supposed to be this way?

 

How long did the car sit before you removed the cover?

 

^
Exactly.
Straight after shut down there is lots of oil there.
Hopefully

During this compression test you cranked the engine.. right?
Oil pump turns too

 

yea all of the parts under there i.e. cams rockers the chain all require oil to avoid friction. Thicker oils will stick around up there a little longer then your thinner ones will.

 

The engine was still warm for the test of course.
I understand that the oil pump cranked and all that, but I mean there was so much oil sitting in there! It's almost like it got trapped in that area, without draining down back to the crank case.

 

thats not the source of your oil consumption

 

Was there enough oil to run down the side of the engine when you removed the cover?

How about this ... Let the warmed engine sit for 15 minutes, then check the oil level; Then start the engine, run it for a few seconds, shut it off, and check the oil again. The drop in oil leve will tell you how much oil is up in the block and head right after shutoff. I'm not sure what the normal difference should be, but you could compare notes with someone else to see if there was any difference between your car and theirs.

Is the car smoking?