It sounds like you need new piston rings. Cylinder compression for a 1997-2002 Ford Escort from the factory is about 200 PSI. 180 through 200 PSI is good, below 180 usually means the Piston Rings are worn or a possible crack in the engine case. If your going to have to take the engine apart to replace the rings, you might as well have the engine overhauled (replace everything while it's apart). Usually the overhaul interval is every 250,000 Miles or sooner. Something you may want to try if you need the car to last a bit longer, try one of those additives that are suppose to help improve commression that you add to your oil, they should sell it in the automotive section at Walmart, though it's very likely that it will not work.
Another simple test to verify everything is a Drop-Down (differential pressure) test, you can buy a drop-down tester at Harbor Freight. You use an air compressor to compress your cyliners with this and you remove your oil cap and listen for leaks. Most of the time air will leak past the piston rings, but with this test you can also check for cracks in your engine case. This should verify if it's the rings or not.
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Check the timing belt, and also be sure that a camshaft did not break.
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