Why is oleoresin used in certain food products and as an industrial oil?

It is used in food products because the body can digest it with enzymes and use it for fuel or store it as fat. It is used as an industrial oil because it does not fall apart when pressure between two metals press against it. Instead, it creates a thin film and lets the metals slide on the film instead of against each other. In other words, two metals sliding against each other do not digest it.