Long Term Engine Storage

Priming the oil with a drill won't cause enough splash/wash to wipe away all the important lube.
Don't use WD for anything but washing water off of parts.

When an engine is running, motor oil does a good job of keeping engines well lubed and clean - use motor oil to lube cylinder walls, etc.

Single-grade oils (straight 30w) sticks better and doesn't tend to flow away and can be used for longer term storage. Pick up some single-grade from a local airport - those engines are critical pieces of machinery that spend 90% of their time stored outside in the weather.. the lubes and oils used are pretty good at preventing rust on internal parts while they sit.

Otherwise, try to keep it stored in a place that doesn't see humidity or large temperature swings (which can create condensation). Probably not a huge issue in Phoenix most of the time - even during monsoon season the block isn't likely to get cold enough to condense water onto. If the bag around the engine is 'sealed', then I'd definitely add some sort of desiccant pack inside.