Ned,
Bill Birkeland covered this issue a while back in the
Black Gold thread.
A quick snippet:
If the oil is coming from the mantle why is it only found in basins with organic-rich rocks suitable for the production of oil and gas and only in basins where these source rocks have been heated enough for oil and gas to have been distilled from these rocks? Also, why does the character of the oil always match the unique character of the organic-rich rock present within a basin? If oil is derived from the mantle, these relationships shouldn't exist at all and it should be found wherever geologic structures suitable for trapping oil exist. But, it isn't.