Could someone help me identify what this is that is leaking oil? It's on the opposite side of the PCV valve.

 

That is a 90 degree crank case breather (black 90) and the garment is the round seal between it and the valve cover. You have to get replacements from the dealer. Also the tube is a pre-bent tube that is dealer item only.

 

What happens when this part goes bad? Does it just make a mess or does it effect performance as well?

 

Sorry, duplicate post here. Deleted.

 

That is just a pipe and hose. Nothing to go bad. And to answer the question, it is indeed oil. Just clean it off.

IndyDurango