My right rear shock absorber by my 08 rubi is covered in an oil of some sort and now covered in dirt that has stuck to it. Do you guys think my shock failed?

 

Sounds like your shock is finished. I had one go bad on my 04 Wrangler when I bought it brand new. I only put about 2K miles on it when it went out...and no off roading at that time. Exact same symptoms as what you are describing. It happens. If your JK is still under warranty, you should be able to get it replaced for free.

 

Sounds like your differential breather leaked some oil onto your shock.

 

Looks like a trip to the dealer next week.

 

I would clean it off. If it is the shock as it cycles it will continue to leak. If you don't then the differential was probably just overfilled at the factory which is normal.