Crude oil production fell by 126,000 barrels per day in 2007 according to a report released last week by British Petroleum. The 2008 Statistical Review of World Energy also shows that consumption of oil rose to more than 85 million barrels per day, and now exceeds the supply by nearly 4 million barrels per day. A review of BP’s historical data shows that except for the year 1998, consumption of oil has exceeded supply every year since 1981. It is unclear where the oil has been coming from to bridge this supply/demand gap over the last 27 years, but it is clear that the gap is growing. Last year’s supply gap of 3.7 million barrels per day is the largest supply shortfall BP has ever reported. The tight supply has not gone unnoticed by markets: oil reached a new high in mid-day trading on Monday, of nearly $140 dollars per barrel.