Does motor oil break down over time with little mileage or engine hours?

I used to have a car that I drove about the same 3,500 miles per year as you. I changed its oil once a year, despite the fact that the specified oil change interval, in miles, was 7,500.

I don’t agree that oil should be changed every six months on low mileage vehicles, but I can’t see leaving it unchanged for more than a year. The reasons why have already been listed by others.