If it isn't leaking out, then it is getting burnt out. The cat will take care of that tell-tale blue smoke that you were expecting to see.
Had a '97 GMC 350ci. Lost a valve seal, 1qt every 600mi, misfire at idle. No smoke out of the pipe.
Do a compression test to see if you have a low cylinder (or multiple low cylinders) to try to pin point stuck/worn rings. Pull the spark plugs to indicate the problem cylinder(s) based on plug color.