There are many other reasons for why our oil demand has fallen, including curbed manufacturing activity due to the recession. But as I said, my purpose in this article wasn't to detail them all - it was only to investigate the vehicle efficiency claim.
Refineries are able to nudge their processes to produce slightly more gasoline and diesel out of a barrel, but at the expense of lower production of heavier distillates. So-called refinery gains are also responsible for a little growth in the quantity of refined products produced out of a barrel. I discussed that in a previous column:
http://www.smartplanet.com/blog/energy-futurist/fuel-to-byrne/480 But these factors would increase supply, not reduce demand.