Re: late 70s OMC Iron Duke 4 cyl grey oil
Condensation that produces a lot of water is fairly rare in marine engines. Once the engine warms up the condensation evaporates.
Gray oil is an indication quite a bit more water caused by a cracked block or head. If the boat was not run for 10 years it probably was not winterized at all. (Michigan has freezing temps in the Winter I'll bet

)
If the engine will turn over with a wrench or even the starter, change the oil and see if you can make it run.
If it's a V-8 the cracks can usually be found on the outside of the block near the soft plugs. If you see none, they could be under the intake manifold. If it's an inline engine they usually crack up under the intake/exhaust manifold.
You could also have a cracked head. That's less likely since the head usually drains of most of the water once the engine is shut down. The blocks don't drain after shutdown and usually crack.
Regards,
Rick