By Roby Brock
Fueled by billions of dollars of new investment in the Fayetteville Shale, Arkansas is now the seventh largest producer of marketed natural gas, trailing only Texas, Wyoming, Oklahoma, New Mexico, Colorado and Louisiana, according to new federal statistics.
Arkansas leapfrogged states such as California, Utah and Alaska to jump into the nation’s top 10 in 2008, and has remained strongly in the position in 2009 and throughout 2010.
According to state regulators, the list of top natural gas producing companies in Arkansas in 2009 ranks as follows:
1. SEECO (subsidiary of Southwestern Energy)
2. Chesapeake
3. XTO Energy
4. Stephens Production
5. Forest Oil
Russia lifts poultry ban on U.S. products
Russia agreed to re-open its borders to poultry imports from the U.S. after President Barack Obama and his Russian counterpart, Dmitry Medvedev, met in advance of the latest G8 and G20 summits.
Russia banned imports of U.S. poultry products in January, claiming food safety requirements were too lax. In announcing the lifting of the ban, Russian officials said that their concerns were close to being resolved.
The lifting of the ban, which is still an undetermined date, will provide a much-needed boost for Arkansas’ poultry industry, including Springdale-based Tyson Foods. By some estimates, the Russian market is worth $100 million annually to Arkansas poultry companies.
Wal-Mart strikes deal to expand in Chicago
Wal-Mart announced it would work with the city of Chicago to build several dozen stores, create 12,000 jobs and develop charitable partnerships during the next five years.
Wal-Mart said its long-term initiative — dubbed the “Chicago Community Investment Partnership” — would create more than 10,000 retail jobs and 2,000 unionized construction jobs in the nation’s third largest city. The jobs would pay “competitive wages at all levels,” according to Wal-Mart.
The Bentonville-based retail giant also touted its charitable efforts in Chicago. Wal-Mart said it would develop charitable partnerships in Chicago worth $20 million to eradicate hunger and curb youth violence.
Windstream CEO: Broadband policies have created ‘rural-rural divide’
Windstream CEO Jeff Gardner testified before a U.S. Senate committee this week on the need for greater government assistance to private businesses aiming to extend broadband penetration in the most remote regions of the country.
Gardner said that his firm, Little Rock-based Windstream, currently offers broadband to about 90 percent of its rural customers, but to reach the remaining 10 percent would require tremendous help through incentives and funding.
“No rational economic case exists for extending broadband to most unserved areas,” Gardner told the committee. “We have heard about the fear that reform might create a rural-urban divide, but the National Broadband Plan has recognized that the current rules have already created a rural-rural divide.”
SWEPCO shifts plans for Turk plant
The Arkansas Supreme Court shot down a request to review its decision on disallowing SWEPCO’s Turk power plant permit to go forward. The court had ruled previously that the permitting process between the electric utility and the state Public Service Commission was flawed and should start over again.
SWEPCO announced that construction of the controversial $1.7 billion coal-powered plant will continue, but it will move the plant to “merchant” status. That means that SWEPCO will recover its costs of the power plant through sales of electricity on the wholesale market, not through retail customers in its service area.
By selling on the wholesale market, SWEPCO will avoid the need to receive state regulatory approval for the plant’s construction. There are at least three merchant power plants currently in operation in Arkansas and a fourth is under construction in Osceola.
State appliance rebate to grow
The Arkansas Energy Office announced an increase in rebate amounts for the Energy Star Appliance Rebate Program. The new rebate amounts are effective immediately and will apply to those who have already received a rebate through the program that encouraged the purchase of new energy-efficient appliances.
The program was funded under the federal stimulus plan with a $2.74 million grant.
The new rates will increase the rebate for refrigerators to $275.00 from $125.00; washing machines to $225.00 from $175.00; and on certain water heaters to $300 from $200.00.
For more information on the program, visit www.arkansasenergy.org or call 1-877-883-8510.
Hot Springs plant to add 150 new jobs
Plastics packager Rexam will expand its current operations in Hot Springs adding more than 150 new jobs by the end of 2010. Rexam, which currently employs more than 250 workers in Arkansas has begun hiring for additional manufacturing and supervisory positions.
The Hot Springs facility manufactures injection and compression molded plastic jars and closures. It is part of Rexam’s global plastics business which operates more than 40 plants and employs over 13,000 people around the world, serving the healthcare, closures, food and personal care markets.
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Roby Brock, a freelance journalist based in Little Rock, writes weekly for the Arkansas News Bureau. His weekly television program airs at 10 p.m. Sundays in Central and Northwest Arkansas. His e-mail address is roby@talkbusiness.net; his Web site address is www.talkbusiness.net.
