The sender is located right by the oil filter and is a really common failure. The part is usually around $40-50. You would have to remove it and hook up an pressure tester to the engine to determine if it has good pressure. But like I said, it's a really common problem on these.
Location of oil pressure sender unit depends on what engine you have. There should be one wire going to sender, and if it has come off, gauge will read zero. 4.0 inline 6 has sender low on passenger side of engine, above the starter.
SOURCE: RPM opposite effect on oil guage
how many miles are on the vehicle this usually happens when the oi; pump or engine is wore out.
SOURCE: oil pressure reads maximum on gauge when driving, half at idle
Replace the oil pressure sending unit. But like emissionwiz said, location depends on the engine size.
SOURCE: when first starting the 2000 jeep grand cherokee
When the pressure reads low, are you hearing any knocking or tapping noises from the engine? If so, you may have worn engine bearings. I'd check the actual pressure by having a mechanical gauge installed on it in order to determine the actual pressure (your gauge is electro-mechanical and not quite as accurate) If pressure is actually that low the oil pan must be removed and bearings, oil screen etc need to be checked.
The reason pressure is always higher at first is that when cold the oil itself is thicker...as it gets hot and thins out pressure will drop somewhat, but should not go that low. Only other thing that can affect pressure in that way would be either a bad sending unit (you will know that after testing) or gasoline contamination in oil (happens if an injector is not working properly)
Good luck with it!
SOURCE: oil pressure guage pegs out when I accelerate--WHY
Check wiring to sensor on motor clean or replace.If that is OK.then consider: older high mileage cars will start to ware their bearing and causing more back pressure under load, you may have to live with it. Unless you what to rebuild motor.
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