Statistics | |
---|---|
GDP | $118,907 billion [1] |
GDP per capita | $57,202 [2] |
Population below poverty line | 19.1% [3] |
0.4773 [4] | |
Labor force | 1,349,512 [5] |
Unemployment | 4.0% [6] |
Public finances | |
Revenues | $4,604 million [7] |
Expenses | $4,604 million [7] |
The economy of Arkansas produced US$119 billion of gross domestic product in 2015. [1] Six Fortune 500 companies are based in Arkansas, including the world's #1 corporation by revenue, Walmart. [8] Arkansas's per capita income for 2010 was $36,027. [2] The three-year median household income from 2009-11 was $39,806, ranking forty-ninth in the nation. [9]
According to CNBC, Arkansas currently ranks as the 35th best state for business, with the 10th-lowest cost of doing business, 8th-lowest cost of living, 41st best workforce, 29th-best economic climate, 41st-best educated workforce, 41st-best infrastructure and the 32nd-friendliest regulatory environment. Arkansas gained twelve spots in the best state for business rankings since 2011. [10]
Arkansas ranks as one of the top states for charitable giving. [11] In 2011, Arkansans gave 6.3% of their discretionary income to charity, ranking it as the seventh-most generous state. [12] The Pine Bluff metropolitan area ranked as the seventh-most charitable metro area in the nation during the same time period.
The state's 2011 exports totaled $5.6 billion. [13] Civilian aircraft was the primary export from Arkansas in 2011 in terms of market share, worth approximately half a billion dollars. Poultry, cotton, rice, graders, ammunition, organic chemicals, steel, and shock absorbers are also important exports from Arkansas. Dassault Falcon Jet Corporation in Little Rock is one of the largest foreign-owned corporations in Arkansas. [14]
Arkansas's primary exporting partners in 2011 included Canada (24.9%), Mexico (12.1%), China (7.4%), Japan (3.8%), South Korea (3.5%), France (3.0%), and Singapore (3.0%). [15]
The state also ranks third in terms of channel catfish aquaculture, with about 19,200 acres (78 km2) under catfish farming in 2010. The peak of catfish farming in the state was in the year 2002, when 38,000 acres (150 km2) were under farming. In 2007, the state's catfish producers generated sales of $71.5 million – 16 percent of the total U.S. market. [16] Arkansas was the first state to develop commercial catfish farms in the late 1950s. The number of catfish farms in the state grew through the 1990s as farmers entered the catfish business as a way to provide additional income during a time of low prices for cotton and soybeans.
The following table lists the public companies headquartered in Arkansas with 2017 revenues placing them in the Fortune 1000 largest U.S. companies. [8]
State Rank by Revenue | Company Name | National Rank | Revenue ($billions) 2012 estimate | Headquarters City | NAICS Sector |
---|---|---|---|---|---|
1 | Walmart | 1 | 500.3 | Bentonville | Retail Trade/Warehouse Clubs and Supercenters |
2 | Tyson Foods | 80 | 38.3 | Springdale | All Other Miscellaneous Food Manufacturing |
3 | Murphy USA | 279 | 10.9 | El Dorado | Convenience Stores |
4 | J. B. Hunt | 395 | 7.2 | Lowell | Freight Transportation Arrangement |
5 | Dillard's | 439 | 6.4 | Little Rock | Department Stores |
6 | Windstream | 474 | 5.8 | Little Rock | Communication Services, not elsewhere classified |
7 | ArcBest Corporation | 763 | 2.8 | Fort Smith | General Freight Trucking |
8 | Murphy Oil | 902 | 2.2 | El Dorado | Crude Petroleum Extraction |
The following table lists the only privately held companies headquartered in Arkansas with 2011 revenues over $1 billion. [17]
State Rank by Revenue | Company Name | National Rank | Revenue ($billions) 2007 estimate | Employees | Headquarters City | NAICS Sector |
---|---|---|---|---|---|---|
1 | Golden Living | 154 | 2.73 | 42,000 | Fort Smith | Other Individual and Family Services |
Arkansas produced 588,700,000,000,000 British thermal units (1.725×1011 kWh) in 2007, mostly from coal, petroleum, nuclear, and renewable energy sources. [18] In 2007, 46.2% of Arkansas's energy production was from natural gas, 27.6% from nuclear power, 19.9% from renewable sources, 6.2% from fossil fuels. [19] Arkansas imports petroleum for use in the transportation sector but is a net exporter of electric power, selling 20,400,000,000,000 British thermal units (6.0×109 kWh) to the national electric grid in 2007. [20] The rural nature of Arkansas causes Arkansans to spend more on energy than the national average. Due to transmission, 65% of electricity was lost on its way to consumers in 2007. [21] The state's low population density results in higher electricity costs and more gallons of fuel used per vehicle. [22] Arkansas consumes more natural gas and renewable energy and less fossil fuels than the national average. [23]
Petroleum production in Arkansas began with a boom in the early 1920s in southern Arkansas. Largely produced by Union, Lafayette, Columbia, and Ouachita counties, the boom began when the Busey Well No. 1 was completed on January 10, 1921. The region, especially El Dorado and Smackover, oil production exploded into a large part of the Arkansas economy. Today, petroleum is a minor piece of the state economy, yet the industry remains one of the largest employers in the region. Today, remnants of the oil boom include Murphy Oil, a gasoline retailer and Arkansas Museum of Natural Resources, which informs visitors of the history of oil in the area. Two refineries, the El Dorado Refinery and the Smackover Refinery produce a combined 76,800 bbl/d (12,210 m3/d).
Natural gas has become an important source of energy and economic activity in north central Arkansas. Hydraulic fracturing in the Fayetteville Shale has impacted much of the region's economy, including Cleburne, Conway, Faulkner, Van Buren, and White counties. [24] The state ranked 12th in terms of marketed production of natural gas in 2007. [25] However, health and environmental concerns, including the possible responsibility for earthquakes called the Guy-Greenbrier earthquake swarm have slowed the continued development of activity in the region. [26] [27] [28]
Although accounting for a small portion of Arkansas's energy production mixture, coal reserves are being mined in the state. Coal is mostly located in the Arkansas River Valley in western Arkansas. The state has significant lignite deposits as well. Arkansas coal has very low sulfur content compared to national averages.
Renewable energy plays an important role in Arkansas's energy production and consumption cycle. The state's energy mix included 10% renewables, compared to a national average of 5.7%, in 2007. [29] Hydroelectric power is the state's largest source of renewable energy. Dams such as Beaver, Bull Shoals, Greers Ferry, and Dardanelle Lock and Dam all have capability of producing hydroelectric power. [30] Although Arkansas ranks 27th nationally in wind energy potential, the state has few wind turbines installed. [31] However, the world's largest turbine blade manufacturer, LM Wind Power and Nordex, a turbine component company have both added facilities in the state. [32]
Arkansas is ranked 43rd in oil production and 40th in natural gas production among the states in 2020. Oil and Gas production provides thousand of jobs in Arkansas. The jobs include including exploration, drilling, production, transportation, and refining. [33] [34] [35]
Agriculture is an important component of Arkansas' economy, the majority of agricultural production is of livestock. Rice cultivation in Arkansas is significant. [36] Much of Arkansas' farmland is irrigated. [37]
By employment agriculture was the largest industry in Arkansas in 2023. [38]
This section needs additional citations for verification .(April 2023) |
Arkansas imposes a state income tax with six brackets, ranging from 1.0% to 7.0%. The first $9,000 of military pay of enlisted personnel is exempt from Arkansas tax; officers do not have to pay state income tax on the first $6,000 of their military pay. Retirees pay no tax on Social Security, or on the first $6,000 in gain on their pensions along with recovery of cost basis. Residents of Texarkana, Arkansas are exempt from Arkansas income tax; wages and business income earned there by residents of Texarkana, Texas are also exempt. Arkansas's gross receipts (sales) tax and compensating (use) tax rate is currently 6%. The state has also mandated that various services be subject to sales tax collection. They include wrecker and towing services; for-hire transportation; [39] dry cleaning and laundry; body piercing, tattooing and electrolysis; pest control; security and alarm monitoring; self-storage facilities; boat storage and docking; and pet grooming and kennel services.
Along with the state sales tax, there are more than 300 local taxes in Arkansas. Cities and counties have the authority to enact additional local sales and use taxes if they are passed by the voters in their area. These local taxes have a ceiling or cap; they cannot exceed $25 for each 1% of tax assessed. These additional taxes are collected by the state, which distributes the money back to the local jurisdictions monthly. Low-income taxpayers with a total annual household income of less than $12,000 are permitted a sales tax exemption for electricity usage.
Sales of alcoholic beverages account for added taxes. A 10% supplemental mixed drink tax is imposed on the sale of alcoholic beverages (excluding beer) at restaurants. A 4% tax is due on the sale of all mixed drinks (except beer and wine) sold for "on-premises" consumption. A 3% tax is due on beer sold for off-premises consumption.
Property taxes are assessed on real and personal property; only 20% of the value is used as the tax base.
Natural gas is a naturally occurring mixture of gaseous hydrocarbons consisting primarily of methane (97%) in addition to various smaller amounts of other higher alkanes. Low levels of trace gases like carbon dioxide, nitrogen, hydrogen sulfide, and helium are also usually present. Methane is colorless and odorless, and the second largest greenhouse gas contributor to global climate change after carbon dioxide. Because natural gas is odorless, odorizers such as mercaptan are commonly added to it for safety so that leaks can be readily detected.
Hydrocarbon exploration is the search by petroleum geologists and geophysicists for deposits of hydrocarbons, particularly petroleum and natural gas, in the Earth's crust using petroleum geology.
The Barnett Shale is a geological formation located in the Bend Arch-Fort Worth Basin. It consists of sedimentary rocks dating from the Mississippian period in Texas. The formation underlies the city of Fort Worth and underlies 5,000 mi² (13,000 km²) and at least 17 counties.
Fracking in the United States began in 1949. According to the Department of Energy (DOE), by 2013 at least two million oil and gas wells in the US had been hydraulically fractured, and that of new wells being drilled, up to 95% are hydraulically fractured. The output from these wells makes up 43% of the oil production and 67% of the natural gas production in the United States. Environmental safety and health concerns about hydraulic fracturing emerged in the 1980s, and are still being debated at the state and federal levels.
Shale oil extraction is an industrial process for unconventional oil production. This process converts kerogen in oil shale into shale oil by pyrolysis, hydrogenation, or thermal dissolution. The resultant shale oil is used as fuel oil or upgraded to meet refinery feedstock specifications by adding hydrogen and removing sulfur and nitrogen impurities.
Shale gas is an unconventional natural gas that is found trapped within shale formations. Since the 1990s a combination of horizontal drilling and hydraulic fracturing has made large volumes of shale gas more economical to produce, and some analysts expect that shale gas will greatly expand worldwide energy supply.
The Bakken Formation is a rock unit from the Late Devonian to Early Mississippian age occupying about 200,000 square miles (520,000 km2) of the subsurface of the Williston Basin, underlying parts of Montana, North Dakota, Saskatchewan and Manitoba. The formation was initially described by geologist J. W. Nordquist in 1953. The formation is entirely in the subsurface, and has no surface outcrop. It is named after Henry O. Bakken (1901–1982), a farmer in Tioga, North Dakota, who owned the land where the formation was initially discovered while drilling for oil.
The Haynesville Shale is an informal, popular name for a Jurassic Period rock formation that underlies large parts of southwestern Arkansas, northwest Louisiana, and East Texas. It lies at depths of 10,500 to 13,000 feet below the land’s surface. It is part of a large rock formation which is known by geologists as the Haynesville Formation. The Haynesville Shale underlies an area of about 9,000 square miles and averages about 200 to 300 feet thick. The Haynesville Shale is overlain by sandstone of the Cotton Valley Group and underlain by limestone of the Smackover Formation.
Oil and gas production, tourism, and federal government spending are important drivers of New Mexico's economy. The state government has an elaborate system of tax credits and technical assistance to promote job growth and business investment, especially in new technologies.
The oil and gas industry plays a central role in the economy of the United Kingdom. Oil and gas account for more than three-quarters of the UK's total primary energy needs. Oil provides 97 per cent of the fuel for transport, and gas is a key fuel for heating and electricity generation. Transport, heating and electricity each account for about one-third of the UK's primary energy needs. Oil and gas are also major feedstocks for the petrochemicals industries producing pharmaceuticals, plastics, cosmetics and domestic appliances.
Shale gas in the United States is an available source of unconventional natural gas. Led by new applications of hydraulic fracturing technology and horizontal drilling, development of new sources of shale gas has offset declines in production from conventional gas reservoirs, and has led to major increases in reserves of U.S. natural gas. Largely due to shale gas discoveries, estimated reserves of natural gas in the United States in 2008 were 35% higher than in 2006.
The Antrim Shale is a formation of Upper Devonian age in the Michigan Basin, in the US state of Michigan, and extending into Ohio, Indiana and Wisconsin. It is a major source of natural gas in the northern part of the basin.
The Fayetteville Shale is a geologic formation of Mississippian age composed of tight shale within the Arkoma Basin of Arkansas and Oklahoma. It is named for the city of Fayetteville, Arkansas, and requires hydraulic fracturing to release the natural gas contained within.
Fracking is a well stimulation technique involving the fracturing of formations in bedrock by a pressurized liquid. The process involves the high-pressure injection of "fracking fluid" into a wellbore to create cracks in the deep-rock formations through which natural gas, petroleum, and brine will flow more freely. When the hydraulic pressure is removed from the well, small grains of hydraulic fracturing proppants hold the fractures open.
Shale gas is an unconventional natural gas produced from shale, a type of sedimentary rock. Shale gas has become an increasingly important source of natural gas in the United States over the past decade, and interest has spread to potential gas shales in Canada, Europe, Asia, and Australia. One analyst expects shale gas to supply as much as half the natural gas production in North America by 2020.
The petroleum fiscal regime of a country is a set of laws, regulations and agreements which governs the economical benefits derived from petroleum exploration and production. The regime regulates transactions between the political entity and the legal entities involved. A commercial or legal entity in this context is commonly an oil company, and two or more companies may establish partnerships to share economic risks and investment capital.
United States energy law is a function of the federal government, states, and local governments. At the federal level, it is regulated extensively through the United States Department of Energy. Every state, the federal government, and the District of Columbia collect some motor vehicle excise taxes. Specifically, these are excise taxes on gasoline, diesel fuel, and gasohol. While many western states rely a great deal on severance taxes on oil, gas, and mineral production for revenue, most states get a relatively small amount of their revenue from such sources.
Shale gas in the United Kingdom has attracted increasing attention since 2007, when unconventional onshore shale gas production was proposed. The first shale gas well in England was drilled in 1875. As of 2013 a number of wells had been drilled, and favourable tax treatment had been offered to shale gas producers.
The United States state of Arkansas is a significant producer of natural gas and a minor producer of petroleum.
Unconventional reservoirs, or unconventional resources are accumulations where oil & gas phases are tightly bound to the rock fabric by strong capillary forces, requiring specialised measures for evaluation and extraction.
All motor carriers and bus lines that travel for hire into or through the State of Arkansas are subject to assessment by the Tax Division