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Causes
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A German shepherd's skin and coat can become oily from internal or external causes. Allergies to food, environment, or fleas can lead to skin problems, as can parasite infestations from mites or ticks. Thyroid problems can cause an excess of oil to be secreted by the skin, as can emotional issues that are overly stressing the dog out.
Grooming
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German shepherds are not the most high maintenance dogs when it comes to grooming, but you must brush and bathe them once in a while to keep their skin and coat in top condition. Inside dogs should be brushed at least twice a week to remove loose hair, and bathed twice a month to remove build-ups of dead skin. If they go outside frequently and play in water, mud, or heavy brush, you should bathe them more often.
Diet
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Just like with humans, an improper diet can lead to oily skin and hair in dogs. German shepherds should eat high protein, high fat foods consisting of lamb, beef, or chicken. Too many fillers such as cornmeal can lead to digestive problems, which can in turn lead to skin and coat problems.
Canine Seborrhea
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Seborrhea is a skin condition that causes greasy or dry skin, a flaky coat, and an unpleasant smell. German shepherds are a breed prone to a hereditary form known as primary idiopathic seborrhea. Unlike secondary forms of seborrhea that are symptoms of another disease and can be cleared up by curing that disease, primary seborrhea cannot truly be cured and instead can only be managed. Veterinary prescribed medicated shampoos, antibiotic ointments and topical steroids are used to treat seborrhea outbreaks.
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Oily Skin & Coats on German Shepherds
German shepherds are medium to large size dogs with a wolf-like build and a dark or tan double-layer coat. Sensitive skin is more common in German shepherds than in other breeds of dogs, and they can have adverse reactions to the chemicals in shampoos or flea dips. In some cases, an outbreak of oily skin and fur on a German shepherd can be from natural causes, while in other cases it can be the sign of a serious health issue.