Slippery Situation
In most engines the rotating assembly sits halfway in the block and halfway in the oil pan. If the oil level is high enough the crankshaft counterweights and rod ends will contact the oil and cause a great amount of windage (or drag). Lowering the oil level by installing a large capacity pan (or by draining out a quart), allows the rotating assembly to spin freer and you'll notice a horsepower increase at the wheels.
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