Oil production rose briskly from 2002 through 2004, before appearing to hit a peak in 2005. That peak fueled more discussion of peak oil theory. However, rising prices have induced additional supply:
Since last August, however, production has been on the increase again. (I consider the last observation, April, to be month-to-month noise in the data.)
Why have prices been rising so rapidly with rising production? Got to be demand growing even faster. That demand is likely to cool, though, due to slower U.S. economic growth and higher fuel prices in China. (Their prices are controlled by the government, which recently hiked them.)