Crazy as it may seem, h2o is one of the by-products of combustion of the fuel we know as gas, as well as all hydrocarbon fuels. For every gallon of fuel burnt, one gallon of water is produced. I forget the specific chemical equations...

As the steam exits the engine, it cools in the exhaust system and condenses. When the exhaust system is cooled by cold ambient air, we tend to notice it much more. Those of us in northern climates are used to seeing the condensation burbling out of the tailpipe.

In urban areas like my Minneapolis, cars waiting at stoplights will drip water onto the pavement where it promptly freezes. Of course this happens just before intersections, so sometimes one will find a big patch of black ice just before that red light. Causes lots of collisions. Not really a problem unless it's <0 degF, though.

Actually water in the exhaust is common to all autos. When you exhaust cools down, humid air is drawn into the tail pipe/muffler and condenses into water. When you start the car, steam comes out of the tail pipe. If there is a lot of water and you accelerate, water will spit/pour out.
Sounds like you don't drive enough to let the exhaust completely dry out. Get on the highway for about 30 mintues and clean it out.
If you have a N/A motor, check your PCV. That may be one of the reasons you consume a lot of oil.

Klaus
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98 V70Rawd(101Kmi), 95 854T(85K mi), 88 245(165K mi)

Water is a normal by product of the catalytic reaction in your converter.If you are not loosing coolant or the engine misses on start up due to a coolant fouled spark plug,do not worry about it.