It prolly burned the oil, you just didn't see it. ALL engines burn oil, they have to. The oil on the cylinder wall is what ultimately seals the cumbustion chamber, every time it fires a very tiny bit of oil burns away. But with worn rings or valves you'll burn a lot more. I'd check the compression and see what the rings and valves look like.
79 CJ 5, fiberglass tub on a cut down full size chevy frame. Full width axles GM 14 bolt in the rear. Dana 60 up front both with 5.38 gears. 350/400 turbo, np205 transfer case. Custom built modified 3 link rear coil spring suspension in the back, skyjacker leafs in the front. 44X18.5 gumbo mudders. 104" wheelbase hood and doghouse stretched 13" . ramsey 8000lb winch.