B727-200 CREW HAD LOSS OF OIL QUANTITY AND LOW OIL PRESSURE. DURING APCH; THE OUTBOARD FLAPS LOCKED OUT AT FLAPS 2 DEGS.

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FE ADVISED CAPT OF LOSS OF OIL QUANTITY TO APPROX .5 GALLONS AND LOW OIL PRESSURE #2 ENG. CAPT AND FE DISCUSSED PROB AND THEN GAVE FLT CTLS TO ME (PNF) WHILE CAPT AND FE WENT THROUGH COM PROCS. DUE TO CONDITIONS OF ENG PERFORMANCE; ENG SHUTDOWN WAS REQUIRED. CAPT ADVISED ATC TO DSND FROM FL330 TO FL250. I EXECUTED A DRIFT-DOWN DSCNT; WHILE CAPT AND FE TALKED TO COMPANY DISPATCH AND MAINT CTL. AT FL250; ACFT WAS UNABLE TO MAINTAIN ALT; REQUESTED FL230. CAPT REQUESTED BLOCK AIRSPACE BTWN FL220-FL230. ABLE TO MAINTAIN ALT FL228. DISPATCH ADVISED ATC OF OUR SIT WHILE CAPT REQUESTED PRIORITY HANDLING INTO DTW. UPON VECTORS INTO DTW FOR ILS RWY 27L; DURING FLAP EXTENSION; OUTBOARD FLAPS FAILED TO EXTEND PAST 2 DEGS. CAPT REQUESTED VECTOR OFF FINAL APCH COURSE AND DECLARED EMER. NOTE: DURING DSCNT AND APCH; CAPT WAS PF. CAPT GAVE CTLS TO FO WHILE CAPT AND FE COMPLIED WITH COM PROCS AND PREPARED FOR ANOTHER APCH. CAPT RESUMED PF FOR APCH AND LNDG WHICH WERE UNEVENTFUL. LOOKING BACK; I BELIEVE THE CREW SHOULD HAVE DECLARED AN EMER AFTER SHUTTING DOWN #2 ENG AND ADVISED ATC PROMPTLY; FOR NO OTHER REASON THAN TO RECEIVE ANY ASSISTANCE NECESSARY IN CASE OF ACFT CONFLICT AND AIRSPACE RESTRS. ALSO; ALTHOUGH MANY ALTERNATE ARPTS WERE PASSED UP; DISCUSSED WITH DISPATCH; IT MAY HAVE BEEN BETTER TO PROCEED DIRECTLY TO NEAREST SUITABLE ARPT. I DIDN'T KNOW; OR HAVE MEMORIZED; WHETHER THE COM REQUIRED THIS IMMEDIATE ACTION; IF DISPATCH TRIED TO PERSUADE THE CAPT TO DTW FINAL DEST; OR EVEN THE POSSIBLE INFO MAINT CTL WANTED THE ACFT IN DTW. AS FAR AS I KNOW; NO KNOWN OR DELIBERATE ACTS WERE DONE TO VIOLATE ATC; FAR; OR COMPANY REGS.