Why I Don’t Trust Matt Simmons

I remember being puzzled by Matt Simmons hawking of peak oil theories in 2004 and 2005. He was unusually aggressive. While I never took the time to investigate what he was saying in depth, something did not ring true. Then in 2006, when Halliburton spun off KBR, there was his company Simmons International as a co-managing underwriter. (See Halliburton registration document filed with the SEC above.)

In my experience on Wall Street as a partner and member of the board of a leading Wall Street, a firm of that size has to do some extraordinary things to get appointed that high in a underwriting syndicate of this size and importance.

So I was not surprised to read recently that Simmons International asked Matt Simmons to leave when he was widely promoting comments on the Gulf Oil Spill that would drive BP’s stock down without adequately disclosing his personal stock market positions.

I don’t believe a word that Matt Simmons says. Yes, there are serious problems in the Gulf with the condition of the ocean floor and methane gas. However, I prefer commentary from people who have a history of something other than hawking stories that drive up the price of oil and their stock market positions and please Halliburton.

For more on efforts by the oil industry and the national security establishment to keep the price of oil at above market levels, see our interviews with Jim Norman on The Oil Card and the Gulf Oil Spill.

Related reading:

Simmons & Co. Has the Good Sense to Fire Matt Simmons
Catherine Austin Fitts’ Blog Commentaries (18 June 10)

Matthew Simmons
Wikipedia

Halliburton
Wikipedia

KBR (company)
Wikipedia