This white liquid is also known as a “pipe drug”. It's made to be worn. Unless you've worked directly with me, you might not know exactly what “Pookie” is. Well, from time to time I call almost everything that is sticky (thick liquid with varying degrees of stickiness) that way.
It may be putty, but to write this I am referring to “Teflon paste”. It is made to be placed on the threads of pipe fittings that are screwed together, to seal those threads.