The Associated Press fact-checks a claim by Ohio Governor John Kasich, and concludes the Republican’s prospects for oil and gas profits are a bit overoptimistic:
COLUMBUS, Ohio — Ohio Gov. John Kasich’s claim that a single energy company could recover $1 trillion worth of oil and gas from the state’s shale is an exorbitant overestimate, according to experts interviewed by The Associated Press.
At current oil prices, that figure represents more than four times U.S. oil production last year. Viewed another way, every drop of oil produced in America for the next four years will be worth roughly $800 billion, based on current prices and production rates.
“I think he’s way off base,” said Arthur Berman, a Texas-based petroleum geologist and independent energy consultant. “My best estimate is he’s probably wrong by a couple of zeroes.”
U.S. crude oil production in 2011 was 2.078 billion barrels. At roughly $100 a barrel, that’s $200 billion worth of oil.