Carbon had to come from somewhere for life to form as well etc. . . Look at diamonds, they can only form under high pressure and heat. So something is cooking down there besides diamonds.
Again even if the theory is valid I doubt its created at the rate we are using it, so Peak Oil would still be valid theory even if it happens a hundred years from now. Or we find ways to tap into this process like fracking and Oil sand kind of stuff did (A little bit of hope, but just a little though)
Otherwise we are basically cooked as far as civilization goes, no way we will be able to power humanity unless Zero Point energy is discovered real soon.
It looks like 2050 will be about the time that the spicket runs dry of oil. Even then that may be too optimistic a length of time we have left. I will be 90 years old then if I make it that far, so.

What is funny about all this is, after centuries of development in science and technology, humanity runs out of gas just at the time we were starting to get good. Is that it? We basically invented the internet just in time to talk about the end of mankind as he runs out of oil. I might be too negative, but it is ironic the Peak Oil might be the end game after reaching such a point in humanity.