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Photoshop Tutorials » Text » Oil Text 
Copy any text paragraph that you like (I use Far Away From Home lyric in this case) then edit your character palette until you see it's ok.

Apply Layer > Duplicate Layer to duplicate text layer ("oil effect copy" layer). Choose "oil effect" layer and press CTRL+E to merge down two layers. Now rotate an image (Image > Rotate Canvas > 90 CW) and apply Filter > Stylize > Wind with the following settings: Stagger->ON, From the Right.

If you have an image like the one to the left, congratulations! You have come a long way! You just passed the hard part so the rest is easy. You could stop right now and have metal text but you came to get Oil Text so don't give up now!

Double click the text layer and add a Bevel and Emboss layer style. Set it to Inner Bevel with Smooth technique. Set the depth to something over 100%, direction Up set the size to something about 50 with a low soften value. Adjust the shading so that the angle is upwards, 90 degrees, and the altitude is low, ~1 degree. The trick here is to use the highlight and shadow colors to represent the oil and water. Set the highlight and shadow modes to Normal with 100% opacity. Set the highlight color to a brown yellow for oil, and the shadow color to a light blue for water.

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