That would have been used if your instrument panel had a amp meter . That wire was eliminated later on . Volt meters are a lot simpler.
simply look up SAE standard wire colors. the wire color coding has been a standard for about 60 years
Definetly isn't the oil pressure sender. I found that. The orange wire is a thicker diameter. When traced, it comes back to the red/white wire on the alternator. But it also has continuity at the starter.My vote is the oil pressure sender.
You may have to do what i did with my old boat - completely re-wire it. And get rid of those butt connectors.
That would have been used if your instrument panel had a amp meter . That wire was eliminated later on . Volt meters are a lot simpler.