"Steaks 2 inches thick or more generally don't respond well to traditional grilling over high heat. The outside and layer below it tend to be heavily charred and dry by the time that the center reaches the desired temperature (unless you are a black and blue fan). The reverse sear brings the steak up to temperature slowly over low indirect heat, allowing the meat enzymes to work their magic. The steak is then grilled at high temperature to get the appropriate crust."
Season steak generously with salt and black pepper on both sides.
Place wood chips in the smoker box of your gas grill according to manufacturer's instructions.
Preheat one side of the grill to about 250 degrees F (121 degrees C).
Place steak on the cool side of the grill. Cook until an instant-read thermometer inserted into the center reads about 100 degrees F (37 degrees C), 25 to 30 minutes. Transfer steak to a plate. Brush with olive oil and cover with aluminum foil.
Increase heat on the grill to 600 degrees F (315 degrees C) by turning both burners up to maximum.
Cook steak until crust forms and an instant-read thermometer inserted into the center reads 125 degrees F (52 degrees C), about 3 minutes per side. Transfer steak back to plate. Cover with aluminum foil and let rest before serving, about 5 minutes.