Hi I just bought a 2000 Volvo s40 1.9T This is my first car,when i bought it the previous owner gave me all the receipts and list of repairs/services done to the car.There wasnt anything that stood out, and a week before he sold it to me he when to a repair shop and had it fully inspected so that the new owner knew everything about it and again nothing stood out, But when i was going to clean the engine bay i noticed a lot of black residue on the left side of the engine bay, i looked at the hood insulation and found a bit on it too i took off the hood insulation thinking it might be part of the problem and i then turned it on and when to look at the engine to see if it was leaking something but i found a bit of white fume/smoke coming out of the back left side of the engine it self Im guessing its leaking oil but i want someone else to confirm it first. Under the picture called "Engine bay with colors" i circled in red where the smoke came out of and in yellow the area where the residue is. ive also uploaded more pictures of the area where the residue is. Can someone Please help me?

 

From the pics you have loaded into your thread it appears very much like you may have a leaking crankshaft oil seal. (lower pulley pic)
It could however be a camshaft oil seal,probably the exhaust camshaft seal leaking, resulting in oil which is running down and spraying about inside your plastic cambelt cover area and the engine bay.

You need to remove the plastic cover and check this out ASAP as the oil could cause your cambelt or even your serpentine belt to snap with potential catastrophic results to your engine.
i.e. bent valves / damaged pistons etc.
Many threads with pics / videos are on the Volvo forums relating to cambelt, waterpump, tensioner replacements in conjuction with advise on renewing camshaft seals and crankshaft seals also.

 

Thank you so much ill get on it