In a dynamic debate regarding the origins of oil, best-selling author of "Black Gold Stranglehold: The Myth of Scarcity and the Politics of Oil," Craig Smith, told CNBC's "Squawk Box" yesterday: "We can get all the oil we need for dozens, if not hundreds of years to come."
Debating peak oil vs. deep oil perspectives, Smith went head-to-head with Matthew Simmons, author of "Twilight in the Desert" on the cable news outlet's program. Smith, CEO of Swiss America Trading Company, contends that oil is not a fossil fuel. Rather, he believes it is being producing deep within the earth and is brought to attainable depths by centrifugal forces of the earth's rotation. In contrast, Simmons argues that oil is a finite resource and that Saudi Arabian oil supplies are dwindling, putting the world in a possible economic and political crisis.
Smith argued: "We currently have 1.28 trillion barrels of proven reserves, which are the highest in our history. And if, in fact, we are depleting the giant oil wells, how come the reserves are continuing to increase? ? I just don't buy the theory that we're running out of oil."
While Simmons agreed that the planet is not running out of oil, he insisted the industry is facing a peak production crisis. "The risk of running out of oil is miniscule," he said, "but the risk that we're peaking is a very real threat."
Rebutting Simmons, Smith asked, "Why would the oil companies be committing 55 billion dollars to harvesting the gulf if, in fact, there's not enough oil there? I mean, it just wouldn't make sense mathematically.
"Just because the Saudi oilfields may be depleting, it doesn't mean the world's supply of oil is diminishing, and I think we're starting to prove that over and over again, whether it be in the Niger Delta or whether it be in the Trinidad Basin or the Taiwan Basin. I think that America needs to lead the charge in embracing the technology in getting out there and finding these proven reserves that are out there ? bringing them to market and bringing this price into a reasonable area where we can continue to see the synchronization of global growth that we have experienced for the last 20 years."
"Black Gold Stranglehold" advances the argument that technology and education are needed to increase production and exploration efforts.
"The problem is," according to Smith, "if you believe that we are getting oil from decaying dinosaurs and debris from the forests then obviously there's only a finite supply. We don't embrace that. We believe that the earth is creating oil as we speak and that with technological advances and the ability to put human resources together with natural resources, and the wonderful capital markets we have here in America, we can get all the oil we need for dozens, if not hundreds of years to come."
After the appearance on CNBC, Smith issued a challenge for subsequent debates with Simmons, CEO of Simmons & Company International.
Smith and co-author Jerome Corsi's interview last week on "Coast to Coast AM with George Noory," sent "Black Gold Stranglehold" racing up the charts to land at the No. 10 position on Amazon's non-fiction best-seller list. With enormous oil conglomerate profits making headlines, "Black Gold Stranglehold" has opened the dialogue regarding the United States and its need for independence from foreign oil producers.