That thing's 3 inches long. That'd be a hell of a carb. Not saying it could be a needle valve, just not a carburetor. Oil drip control sounds more logical, higher viscosity needs bigger opening.
Of course we're all assuming the end above the knurled knob is solid. Possibly was the whole thing hollow? IE, temp measuring device, gauge mount. Just thought, something for irrigation system. You know, my well pump has a very similar device to control back pressure on the jet pump.
Will we ever know?