I could've sworn Skooma is to be smoked, so why is it drank in Oblivion?

It can be both drank and smoked.

http://www.uesp.net/wiki/Lore:Skooma

The Imperials don't want to end up sounding like the Dunmer.

They don't have syringes yet to shoot it up.

Can you snort Moon Sugar. I've always pictured it as cocaine. Haha.

I figure Bethesda didn't see any utility in implementing skooma smoking in Oblivion, but did see the utility in drinking it like a potion.

I'd always wanted to try moonsugar, it looked sweet and shiny.

Skooma is a fine powder, refined Moon Sugar. It can be ingested orally and smoked, both cause that funny feeling.

Game mechanics and you orally ingest it. They apparently didn't want to design a whole smoking thing for just one item, and had they made it an ingredient (thus getting the "invisible food in face" animation) they wouldn't have been able to give skooma the effects its supposed to have without writing a script that simultaneously carried out all the effects and was crammed in as the effect for eating the ingredient. Easiest solution was to make it a potion.

I wonder though, is skooma a liquid, or is it dissolved into a solution after being refined (being sugar)? Or is it not a liquid at all?

...Skooma-Eaters...

...skooma smoke...

...the thrill of skooma running through your blood...

...a grain of skooma.

And it's kept in bottles.

You tell me.

Hmmm so if it can be ingested, can it be injected? Or maybe im getting a little ahead of myself, they prob don't have that sort of technology..

http://en.wikipedia.org/wiki/Confessions_of_an_English_Opium-Eater vs. http://www.imperial-library.info/mwbooks/skooma-eater.shtml.

http://opioids.com/opium/opiumpipe.jpg vs. http://media.giantbomb.com/uploads/0/4881/894730-skooma_large.jpg

http://upload.wikimedia.org/wikipedia/commons/8/84/French_opium_den.jpg vs. http://www.uesp.net/wiki/Oblivion:Skooma_Den

http://wings.buffalo.edu/aru/vapo-opium.jpg vs. http://www.hmx-12.net/~virgil7/morrowind/images/skooma.JPG