It's all about the energy, engine oil has less than half the specific heat of water and with an average oil capacity of 4-5 liters means it cant store enough energy for quick engine heat-up. There will be noticeable benefits from reduced friction which will lengthen the life of your engine and provide a smoother cold start. Word of warning, most cars (atleast here in the cold weather region) don't have oil coolers and rely on heat radiation from the oil pan and engine to keep oil at a reasonable temperature. Added insulation will interfere with this and oil temperature might exceed safe values.
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