[Masteryota]

If I read this correctly, you have smoke on cold engine start, and it decreases as the engine warms up, that is a sign of worn valve stem seals. The reason the smoke tapers off when the oil level drops is that there isn't enough oil to seep past the seals. Most times it it the intake seal, but replace both. If you are seeing good compression, and no change when oil is squirted into the cylinder, then the rings are ok. You may get a somewhat low reading if it has been run like this for some time, as oil carbon is stickier than fuel carbon, and is harder to remove or burn off the valves and piston. Start with a seal set, run some throttle body cleaner through the intake, and retest once everything clears out. Be careful though, replacing the seals require taking the retainers and springs off, and if not properly supported, the valves will drop into the cylinder, requiring head removal. I hate to outsource, but youtube should have something along those lines to help you out.