Oil discharge from Compressor?

You have more oil than water? That's not right, a new compressor is going to put out
more oil in the beginning. if you cycle it so short that it does not make any water I guess
you could have more oil than water. A tiny amount of oil is normal, with your 5 to 10 min run time
don't think your making any water. With the investment you have I would suggest you contact the seller / manufacturer
And ask them. Judging from the pictures you posted I see nothing unusual, but I would still
check with the seller and or Daystate for your own peace of mind. Then you will know
and wont have to wonder if your being given bad advise. Good luck!