Oil serves as a medium for heat transfer from the pan to the food that is partially or wholy submerged in it. Without a liquid the food would only touch the pan at a few points. Oil can be heated to a high temperature while water is limited to 100°C. The Maillard chemical reactions that makes food brown or caramelized happen above 140°. Industrially produced oils are purified to remove components that decompose at lower temperatures or under exposure to sunlight such as free fatty acids.
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