Interesting idea. I think the recipe could use some work. The alternative fuels you are referring to are alcohols. Nuts and seeds can produces oils for biodiesel, but plants like wheat cannot. If you are looking for suggestions, troll fat and fish would seem like good sources for oil.
Another solution to not having enough dwarven oil for your mods would be add it to vendors throughout the land. Buying it probably isn't as fun as making it though.
I don't know much about Dwemer lore, but from a game play perspective I'm pretty sure Dwarven Oil was used more as a lubricant rather then an energy scource since everything Dwemer seems to run on steam. Based on that concept, it's actually possible that Dwarven Oil can be made from plants. Oils can be extracted from plants(including wheat) using various methods. One of the more popular methods of oil extraction is, ironically enough, steam. Most of these oils tend to be clear, or amber in color once extracted though. A suggestion for achieving the black oil color could be adding a Daedra Heart to the recipe instead of Chaurus Eggs (or add both). Again, I don't know anything about Dwemer lore really, but I think I remember reading that the disapearence of the Dwemer was Daedric Prince related(don't quote me). So adding the Heart could be that boost of magical viscosity that helps Dwemer stuff move so smoothly for very long periods of time. Fish are also a great source of oils, but I've never seen or read anything about Dwemer fisherman. They lived underground right?
Thanks for this timely mod! I bought Skyrim a couple years ago, but never played because I wanted to wait for the mod community to fully mature, which it has. I've spent the last few weeks gathering all the mods I want, and after stumbling across those awesome dwemer goggles I was very disappointed to see the author never added craftable oil. Thanks so much for fixing that oversight!
Hey guys this is my first mod so it may take me a little longer to get everything right like pics and vids. I have both but I am having a hard time getting them to post sorry. I will figure it out ASAP thanks for your patience and understanding.
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Another solution to not having enough dwarven oil for your mods would be add it to vendors throughout the land. Buying it probably isn't as fun as making it though.