Are you sure that it is oil smoke you are seeing???? These pumps will tend to look like they are smoking, but in reality it is just vapour, much like when we breath on a cold day. Alternatively one of the vanes could have tipped. These pumps work by use of floating vanes and as they wear right down they tip and can burn, although the pump would be very stiff to turn by hand if that was the case. Your best bet may well be to strip the pump down and give it a darn good clean anyway just to make sure, the vanes to rebuild them are not expensive.