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Excessive oil burnt in combustion chambers = blue tailpipe smoke. Motor has to be burning fair excess amount of oil for visible blue smoke to be seen. This typically occurs with worn piston rings and/or valves.
White smoke at tailpipe = water vapor/steam...cause is coolant in combustion chambers (typical of head gasket breach).
Do you have a feel for rate of oil loss?
I'd triple check around that VCG, etc. oil at the O2 sensor location seems unlikely to me to be coming with combustion exhaust gases.
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