It is a paste. I have an M4 Spydie Mule that would rust from sitting with air tool oil on it.

I used that stuff and it seems to work pretty well.

I am in a sea blast area so the air is pretty corrosive. I use it on axes and machetes too. Only seems to come of on the areas that have been in a cut during use. I also use it on my chrome plated and oxide plated hand tools. They were rusting just from sitting in the tools cabinet.