The article adopts and implements the essence of applied economics in the examination of economic benefits of the Devon Energy in relation to Oklahoma City (p. 2). The main objective of the analysis or examination of the economic benefits of the Corporation is to develop an effective and efficient framework crucial for the understanding of revenues and economic impacts that would emanate from the new headquarters within the city. Devon Energy Corporation represents one of the leading oil and gas exploration and production companies across the globe. The company focuses primarily on Canada and the United States of America. The organization provides employment opportunities for approximately 5000 individuals across the globe thus contribution towards the development of the economy (p. 2).
The production levels of the organization on a daily basis are approximately 2 billion cubic feet in relation to natural gas. Estimations during this evaluation process draw from the assumptions of the hypothesis, contemporary tax policies, and the modern structure of the economy within the region. Devon Energy Corporation has its principal operation plant in Oklahoma City thus acting as headquarter. There is a proposal in relation to development of a new 1.9 million square foot. The execution of the project would include 400000 square foot low rise, 20000 square feet of the street, and 54-story office tower. The project is estimated to cost around $ 800 million in the context of the four-year period (p. 3). The article notes on the positive impacts of retention and expansion of the activities of the corporation within the city. The positive impacts of the expansion of Devon Energy relate the ability of enhancing lives of the societal members within the region.
One of the impacts of the involvement of Devon Energy is the increase in the employment opportunities within the four years of the execution of the project. Injection of money into the system would offer the need and urgency for labor thus the opportunity for individuals to enhance their living condition through offering their expertise in the relevant field. The article proposes the realization of the direct, personal income construction. This would also supplement the essence of indirect personal income within the four-year plan thus an opportunity to have an enormous impact on the lives of the individuals within the region. The third impact of the project is the generation of one-time tax in relation to sales thus the essence of increasing the revenue levels of the city (p. 4). The article also proposes an economic impact of about $ 954.5 million (p. 4) on the Oklahoma City on an annual basis.
There is room for the increase in the annual economic income in relation to the growth and development of Devon’s employment. Implementation of the project within the city would result into approximately 2, 264 employment opportunities for the unemployed individuals in the region (p. 40. The execution and effective completion of the project would result into a $ 280 million payroll on an annual basis (p. 4). There would also be an increase in the number of individuals enjoying support from the project. The implementation of the expansion project will also generate revenue impacts to supplement the essence of economic influences on the city. The City is also expected to register an increase in the tax revenues upon completion of the project. This relates to increase for revenue emanating from purchasing of new equipment (p. 5).
Work Cited
Applied Economics. Economic Impacts of Devon Energy on Oklahoma City. 4648 E. Shea Boulevard, Suite A-260 Phoenix, Az 85028 October 2008. Print.
http://www.okc.gov/AgendaPub/cache/2/g0lpui45vfohwsn50xnckf3b/44233511182012110240741.PDF
