I have started to pick up the scent of oil on exhaust.   I have not pulled the lower fairing but did see this using a flashlight.  This is sort of below the shift linkage and slightly in front of the shifter shaft on the left side.  There is no oil at the shifter shaft seal and I can't see where this is coming from.  I don't see anything else in the area that should hold oil.  Any ideas?

looks like it's running down and puddling there before it drips.  Hard to tell but up under looks oily also?

I chased down a similar leak that turned out to be the bevel drive gasket. It was leaking on the rear seam close to the top. Not very easy to see but you can reach back there with your finger. I inspected for leaking case vent at the airbox and any other possibility before finding it.  Mine's an '02 and had about 22k on the clock. The failed paper gasket got replaced with a steel one. Not sure if this is your problem but give it a check.

Rich

When I smelled oil burning, I found if you need to look up under the engine, do so when it is dark and use a flashlight to shine up there and a mirror to see where the light is shining.  Mine ended up being from the water pump weep hole.

You could spray some cleaner/degreaser up there and after all is clean, then run the bike for a while and look to see where the fresh oil seepage is coming from.

Water pump oil seal is a good bet.  Well known problem,and the two that I have replaced both leaked around the OUTSIDE of the seal.  Not a seal failure, but something you can cure by improved assembly.  Seal was about $4 at the dealer.

I used Threebond #4 around the outside of the new seal when installing the seal in the water pump.  Wipe off the excess pretty aggressively, and hold off assembling until the next day so the Threebond is good and cured.  Nothing good can happen if that stuff gets inside the engine.

saxman

In order of most to least likely:
Clutch push-rod seal
Water pump seal
Gear change shaft seal (the splined shaft)

That low down it could also be coming from further forwards so could be oil cooler hoses (crush washers perished), Y-pipe leaking (crush washers or a pinhole), leaking sump plug, leaking oil filter cover, etc.
My advice is get the fairing off side and belly pan off and see where the oil is.
Remember that oil flows down and towards the rear of the bike (blown by wind).

I have started to pick up the scent of oil on exhaust.   I have not pulled the lower fairing but did see this using a flashlight.  This is sort of below the shift linkage and slightly in front of the shifter shaft on the left side.  There is no oil at the shifter shaft seal and I can't see where this is coming from.  I don't see anything else in the area that should hold oil.  Any ideas?

Here is an engine on the bench, laying on it's side.
the black arrow points to the weep hole in the waterpump.
Using a mirror and a flashlight, you should be able to see it from the floor.
if there is a drip coming from that hole, you found the place.

After pulling off the external pieces, it looked like water pump seal or the banjo bolt in the same area.  Based on the reply s, it must be the oil pump seal.  This is very helpful.  I'll get that on order.  Do I need to pull the exhaust to get the water pump out?  There is not a lot of space.

Thanks,
Dan

You do not need to pull the exhaust to remove the water pump.

You'll need to thweedle a 1/4" ratchet extension between the exhaust header pipes to loosen and remove the bolt that holds the hard pipe in the water pump.

A repair manual will be of help as clutch slave cylinder and gear shifter bracket need to be removed to get at it IIRC.

YEP.  Shifter, clutch cylinder, water pipe.  I replaced the hoses and O rings at the same time. 
And changed the oil, since I wondered if oil would leak out when I pulled the water pump.
Pretty easy all the way around. 

saxman

Will oil drain out if you do this without draining or is all the oil down in the pan, except for maybe a small amount on the pump?  Just wondering for roadside repair purposes.  I know you can do the star washer without draining the oil - just be careful.

Not sure.  My oil was at the upper level and I tilted/leaned the bike against the wall and lost no oil when I replaced my water pump oil seal.

Maybe try it with the bike level and if oil starts to come out, push it back in and then lean the bike before removal.  It might also be the case if the oil is in the middle of the window it is low enough.  Eyeball it to see if the oil is higher than the low point on the water pump where it slips into the motor.

Another thought may be to put the front wheel on a 2x4 and that may get it high enough that the oil will be more to the rear and not run out.

I drained the oil when I did my water pump. Needed to replace it anyway. I had lived with my leak for about 5 years. Yea, it was that slow and also seemed to come and go. It finally just started coming out all it's own and making a mess so I took and guess that it was coming from the water pump. Turns out for once I guessed right. Good luck with your leak.