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. According to a 2011 Wood Mackenzie study, the Arkansas oil and natural gas industry supports more than 46,000 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. (SOURCE: AIPRO)
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.
Arkansas Revenue
According to the Arkansas State Chamber of Commerce, the state’s general fund has received more than $5.25 million from severance taxes related to the Fayetteville Shale since March 2008.
Specifically, these severance taxes have generated:
- $70 million for the Arkansas Highway and Transportation Department from March 2008 through June 2011;
- $2 million in fees for the Arkansas Department of Environmental Quality from 2009-2010;
- $16 million in fees for the Arkansas Oil and Gas Commission from 2009 – 2010.
- $30 million for county and municipal governments between 2008 and June 2011.
In addition, 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)
