Chevron, the second-largest oil company in the United States, has announced plans to relocate its corporate headquarters from San Ramon, California to Houston, Texas by the end of 2024. This move marks the end of Chevron’s 145-year presence on the West Coast and comes amid increasing regulatory pressure and environmental scrutiny in California.CEO Mike Wirth cited California’s ‘adversarial’ government policies and restrictive environmental rules as key factors in the decision. ‘California has a number of policies that raise costs, hurt consumers, discourage investment, and ultimately are not good for the economy in California and for consumers,’ Wirth stated. The company has been critical of California’s laws, including a recent measure setting a maximum gross gasoline refining margin and penalties for refiners who exceed it.The relocation will be a gradual process, with all corporate functions expected to migrate to Houston over the next five years. Chevron currently employs about 7,000 people in Houston compared to 2,000 in San Ramon. The company has assured that there will be minimal immediate relocation impacts on employees in San Ramon, with some positions supporting California operations remaining there.This move comes at a challenging time for Chevron. The company reported disappointing second-quarter earnings, with profits down 26% to $4.4 billion. Chevron is also embroiled in an arbitration process with ExxonMobil over rights to Hess Corp’s Guyana properties, which could delay the closing of Chevron’s $53 billion acquisition of Hess well into 2025.The relocation of Chevron follows a trend of major corporations leaving California for states with more business-friendly environments. Tesla, Oracle, and Hewlett Packard Enterprise have made similar moves in recent years. Texas Governor Greg Abbott welcomed Chevron’s decision, stating ‘Texas is your true home,’ while California officials defended the state’s environmental policies and its position as a leader in clean energy jobs.
Key points
- Chevron is moving its headquarters from California to Texas due to stricter energy regulations and environmental policies.
- The relocation will be gradual, taking place over five years, with minimal immediate impact on San Ramon employees.
- Chevron’s move follows a trend of major corporations leaving California for more business-friendly states.
- The company is facing challenges, including disappointing Q2 earnings and an arbitration process with ExxonMobil over Guyana oil rights.
Contradictions👾While most sources cite regulatory pressures as the main reason for Chevron’s move, CEO Mike Wirth stated in one report that the relocation is ‘not driven by politics, but rather to be closer to the core epicenter of our industry’.
This contradicts statements in other articles where he directly criticizes California’s policies.
