I get home from work today & hear a noise under the hood of the XF, also see what looks like oil smoke. Pop the hood & there is oil all over the front of the engine compartment, but can't see where it is coming from. I turn the car on & see the water pump pulley is wabbling real bad & making the noise that I heard. I assume this means I need a new water pump, but would a bad water pump throw oil all over the place?

 

Mine did the same thing a couple months ago. The whole engine compartment was covered in coolant not oil. Are you sure it is oil? Both feels slippery, but smell and taste different.

New water pump. Wobbling pulley is a dead give away.

 

You were right, it was water, not oil.
Had my local mechanic replace the water pump, $450. $200 for the part, $200 for labor, $50 for a new belt. OUCH! 65,000 miles on the car.

 

Don't feel bad, mine was replaced at about the 58,000 mile mark but it was covered under the max care warranty so it only cost me $100 plus tax. Seems to be nearly as bad a wear item as the crank sensor.