Semisane, you're right!! It is based on a medicinal grade mineral oil and it also contains a medicinal grade plant oil called Anethole which is derived from the plant Pimpinella Anisum L. That's what gives it that anisette odor that some folks just don't like. You are also right that it is water emulisifiable not soluable. I have found it to be pretty amazing stuff so far....but maybe not as amazing as liquid wrench from what I read of your results of using LW as a patch lube!!!!......BPS