94 lt1 ??oil cooler??
The problem with this setup is that if you overheat the engine, coolant that's overheated goes to the adapter and HEATS the oil.
Most people remove it, some install real coolers in front of the radiator and run oil lines with a real cooler adapter.
What kind of oil pressure are you seeing?
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It is very commonplace to remove, will not hurt a thing especially since they tend to collect solid particles of junk.
On cold days, how much running does it take to get the heater to blow hot?
I say the oil heats up quicker than the cooling system.


Far as coolant vs. oil temps, coolant flows around the combustion chamber, never owned a vehicle with an oil temp gauge but coolant around the chambers makes me suspect coolant will heat quicker despite the substantial greater volume.
The quickest access the oil would have to combustion heat would be the back of the pistons, otherwise pretty much everywhere else it can get heat from has water contact too and in places like under the valve covers there is a lot of water between the chamber and the oil up by the springs.





