Abstract: The present invention relates to a replaceable oil filter and method of using a replaceable oil filter that allows the oil filter to be disengaged from an engine without the spillage of residual used oil. The present invention relates to a replaceable oil filter comprising a housing having an upper portion with a top end forming an opening for threaded engagement with an engine, a filtration unit positioned within the upper portion, a lower portion forming a reservoir subjacent the upper portion, an impermeable barrier separating the upper portion and the lower portion to prevent fluid communication therebetween, and a means for establishing fluid communication between the upper portion and the lower portion to drain residual used oil from the upper portion into the reservoir prior to disengaging the replaceable oil filter from an engine. The present invention also comprises a method for easily replacing an oil filter with minimal or no spillage of residual used oil.