On that era trucks (at least with the 5.7L and standard pickups), there was an oil pressure switch that would command the fuel pump to run. So if you lost oil pressure, the fuel pump would stop. I wonder if the 454/7.4L is the same... If you start it cold, then shut if off, can you hear the fuel pump run for a few seconds (even with the key off)? I ask this because the truck continues to run without oil pressure; the pressure switch should open and stop the fuel pump. In your case a bad sending unit or bad gauge in the cluster. I assume you get the 'Check Gauges' light.
+1 on running a mechanical gauge and verifying oil pressure.