Jobs and Economy

Access to Arkansas’ rich stores of energy would strengthen our nation's energy and national security, and boost the state’s economy.

In addition to providing a stable, affordable supply of energy, the Fayetteville Shale also promises to provide significant economic benefits for the Natural State. The Arkansas oil and natural gas industry supports more than 92,000 jobs and generated more than $960 million in total government revenue, and could generate as much as $4.1 billion in total government revenue and support more than 94,000 jobs by 2030 with pro-development policies.

Arkansas Jobs

In 2008 (most recent figures available), there was $2.3 billion of economic activity specifically related to the Fayetteville Shale, which generated 9,682 Arkansas jobs.  (Source: University of Arkansas)

According to the Arkansas Independent Producers and Royalty Owners (AIPRO), the average salary of employees in the oil and natural gas industry was $64,000 as of 2008 — almost $30,000 above the average state wage. 

It should be noted that the oil and gas industry supports jobs not just in exploring, producing, refining, transporting and marketing oil and natural gas, but also through the purchases it makes of other goods and services that support the industry’s operations. Equipment suppliers, construction companies, management specialists, and food service businesses are all a strong link in the industry. These businesses, in turn, purchase other goods and services that support other jobs throughout Arkansas and the nation.

The oil and natural gas industry supports 9.8 million American jobs.  And over the past decade, more than 30 states have experienced at least a 50 percent rise in the number of workers who support oil and natural gas development directly or through suppliers and service companies. With lower feedstock and energy costs resulting from increasing U.S. natural gas production, more than 1 million additional American manufacturing jobs could be created by 2025, according to PricewaterhouseCoopers.

Investments by the industry provided an annual stimulus to the U.S. economy, totaling $545 billion through capital expenditures, wages, and dividends in 2011 alone, creating jobs and helping provide for America’s economic future. Of that $545 billion, $224 billion was paid to 2.6 million U.S. employees in wages, salaries and benefits, including proprietor income.

Arkansas Revenue

Thousands of Arkansas citizens are receiving annual royalty checks, which puts more money in the pockets of taxpayers and further boosts the National State economy.  (Source:  AIPRO)

The industry supports more than $1 trillion in total value added to the economy, representing 7.1 percent of U.S. GDP. 

The U.S. oil and natural gas industry also pays the federal government significant rents, royalties, and lease payments for production access—totaling $110 billion since 2000. In fact, U.S. oil and natural gas companies pay on average more than $85 million every single day to the federal government in both income taxes and production fees, providing an important revenue stream to fund infrastructure, education and community projects across the country. Allowing greater access to developing these resources could produce upwards of $22 billion of government revenue, according to a report by Wood Mackenzie.  

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