White smoke and burning smell from engine area, can you spot the oil leak?

I own an Audi A4 2008.
When I drive the car for more than 15 minutes I get white smoke coming from under the hood and a burning smell getting into my air conditioning system. When I open the hood, I see the white smoke coming from the area which I highlighted with red in the first picture. The second picture is a zoom-in of the first one. You will probably notice there what I suspect as oil being collected in that engine area and when the engine heats up, the oil is burnt.
I should also note that in the past few months, because of oil indicator light, I’ve added oil twice.

1. Am I right in my diagnosis of the oil leak and the oil being collected?
2. If I am right in my diagnosis, can you see from the picture where the oil leak is coming from? And what should be done to get it fixed?
3. What are the dangers if I continue driving in that condition (but still the oil indicator light is not on) ?