MIAMI, Jan. 3 (UPI) -- Venezuela's oil industry shrank by more than 5 percent in 2007, according to the Venezuelan National Bank, raising concerns the Venezuelan government is not investing enough of its petroleum wealth in the sector.

Oil production was off 5.3 percent in 2007 from the previous year and contributed $3.14 billion to the country's gross domestic product, down from both 2006 and 2005 when the sector accounted for a reported $3.38 billion.

The reduction in oil output in South America's No. 1 petroleum producer coincided with a marked increase in the price per barrel produced by Venezuela in 2007, up to $65.13 per barrel last year from $56.35 per barrel in 2006.

While analysts and critics of Venezuelan President Hugo Chavez consider the bank's news a harbinger of hard times to come for the country's state-owned PDVSA, the national bank did note the country's economy grew significantly in 2007.

Venezuela's economy grew by 8.4 percent, reported the bank, noting other non-petroleum sectors showed positive growth during the year.