The car is starting just fine however when gasing the car bogs down and putters. There is oil in the air filter. What would cause this and would this be why it's running this way?

 

Number one reason is a faulty PCV valve. Then worn piston rings, then clogged oil galleries. Put a new air filter to ensure that is causing the loss of power, then replace the PCV valve; most cost less than twenty bucks and should be replaced every 100K. Worn pistons would also cause blue smoke out the tail pipe. Clogged oil galleries is usually due to clogged oil filter due to not changing it on schedule.