That should be the seal.

 

Hi. I am going to continue this thread because I do not know how to start a new one. So, I have a 98 Volvo V70 Turbo with a major oil leak. I don't really have very much money, so I was hoping to rule out as much as I can before taking it to a mechanic. So any thoughts on DIY things to check? I only have a floor jack and jack stands, but I have all the tools. I am somewhat mechanically inclined, but need a lot of step by step help if possible.