The "white stuff" is either sap or fermented sap caused by bacteria within the tree. The latter is called wetwood or slime flux. It is not life-threatening, so do not worry about it. If it reaches the grass below, it may kill it.
FAQ #9449
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I noticed a woodpecker holes on one of my live oak trees and some white stuff is coming out of the holes. What is the white stuff coming out of the holes the woodpecker made?
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