How to Save Fayetteville’s Big Oil: Investing in the Oil Sands

Fayettefield, Arkansas—In an attempt to make a dent in the oil sands industry, Governor Mike Beebe has proposed a new oil and gas tax that would create millions of dollars in new revenue to invest in the state’s energy infrastructure.

Beebe’s plan, which was introduced in a press conference today, is expected to be signed into law by Governor on Wednesday.

The oil and natural gas tax, which would create a new revenue stream to support the state and local governments and promote the construction of new energy infrastructure, would be the largest of its kind in the nation.

Governor Beebe said the oil tax would create jobs, spur economic development and spur investment in the energy sector.

“I am committed to making Arkansas one of the nation’s most energy efficient states,” said Governor Beeb, a Republican.

“By making Arkansas energy efficient, our tax will create tens of thousands of new jobs and help the state meet its energy needs.

We can’t continue to depend on the oil and coal industry and will create thousands of good paying jobs for Arkansas workers.” 

The oil tax proposal was introduced by Governor Beebee in January 2016, when he signed the first budget bill that created the Arkansas Oil and Gas Development Authority (AOGDA), which manages the state oil and mineral resources.

The bill also created the Oil and Mineral Exploration Commission (OMEC), which oversees oil and energy exploration. 

Today, Beebe signed an executive order creating a new Oil and Natural Gas Development Board to coordinate and implement the oil industry’s efforts in the new tax structure. 

The OMWDA and OMEC are tasked with developing a revenue stream that will be used to fund infrastructure projects and to ensure the energy infrastructure works to support economic growth, including job creation, as well as energy conservation and renewable energy initiatives. 

According to Beebe, the oil taxes are intended to provide a permanent and sustainable revenue source for the state. 

“This new revenue will go directly to help us invest in our infrastructure to provide our residents with the energy they need to support our economy, our economy will grow and our economy is good for the people of Arkansas,” said Beebe. 

This is the first time that Governor Beebat has proposed oil taxes in Arkansas. 

Last year, the Governor proposed an oil tax in Arkansas, but it failed to pass. 

However, Governor Beeby has said that the tax will not only help the oil sector, but also the local communities. 

It will create jobs and spur economic growth for our state, said Governor Barry. 

To help Governor Beebies vision for the oil resources of Arkansas, the state has released an interactive oil tax map. 

Below is a link to the map that shows all of the oil reserves, all of which are located in the Barnett Shale, a basin of deep rock formation in the middle of the state of Arkansas.

The map also shows the oil revenues collected from the oil drilling, exploration and production industries in each of the four states. 

A majority of the Barnett shale is currently under the control of the American Petroleum Institute (API), which represents the oil companies. 

 “Arkansas will continue to be one of America’s most economically competitive states for oil and the oil-producing industry,” said Gov.


In order to meet the requirements of the new oil tax, the State of Arkansas has created a new Office of Energy Efficiency and Renewable Energy to coordinate energy efficiency and renewable efforts across the state as well. 

With Governor Beebey signing this bill into law, Arkansas will now be the ninth state in the country to implement oil and minerals tax reform. 

(Photo by Scott Olson/Getty Images)


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