Car smokes a lot on and after full throttle

[alexc0814]

Hi all,

I’ve had this problem since I got the car 2 years ago but it’s gotten much worse lately and I’m worried about the possibility of fire. On full throttle and high RPM and for a short while afterwards I’ve noticed a pretty significant amount of smoke coming from underneath the rear wheel arches. When I had the car jacked up once I noticed burnt oil residue on the exhaust near the o2 sensor so I’m pretty sure that oil is leaking out onto this and burning. Does anyone know where the oil might be coming from? I’ve never noticed any drips underneath the car, and never visible smoke during chill drives either. I’ll attach the photo from when the car was jacked up.

Thanks