Just out of curiosity, can this oil be recovered? It seems like for $120+ per barrel (I almost said "per gallon"), it might be worthwhile to suck it up and try to process it. Can you put a mixture of oil and seawater into a normal refinery?

It was biodiesel already, no need to put it into a refinery. Unlike ethanol it floats on water, but I doubt it can be profitably recovered. It will be polluted by bacteria, and that causes all sorts of problems.