Chevron Corporation has announced its decision to relocate its headquarters from San Ramon, California, to Houston, Texas, by the end of this year.
This move ends the company’s 140-year presence in California, where it has frequently clashed with state regulators and politicians over issues related to fossil fuels and climate change.
Chevron CEO Mike Wirth cited the company’s disagreements with California’s energy policies and regulations as a primary reason for the move. Wirth expressed concerns that California’s policies increase costs, harm consumers, and discourage investment.
“We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and ultimately we think that’s not good for the economy in California and for consumers,” he told the Wall Street Journal.
Chevron has been based in San Ramon since 2002, having relocated from San Francisco where it was headquartered since 1879.
The company had already sold its San Ramon campus in 2022 and begun moving employees to Houston, though it initially planned to retain its headquarters in California.
The company stated that the relocation to Houston will be completed before the end of 2024. This move aims to enhance collaboration and engagement with senior leaders, employees, and business partners.
Chevron assured that there would be minimal immediate impacts on San Ramon employees, with all corporate functions expected to migrate to Houston over the next five years.
According to the source, Positions supporting California operations will remain in San Ramon.
Chevron’s move follows a trend of companies relocating from California to Texas. Last month, Elon Musk announced the relocation of his companies X and SpaceX to Texas, in response to new California legislation. Musk had previously moved Tesla’s headquarters to Austin in 2021.
Other companies that have made similar moves include Oracle, Hewlett Packard Enterprise, Charles Schwab, and Toyota Motor North America.
Texas Governor Greg Abbott welcomed Chevron’s decision, praising the state’s business climate. Houston Mayor John Whitmire also expressed enthusiasm about the move, calling it “Great for Houston!”
A spokesperson for California Governor Gavin Newsom’s office noted that Chevron’s move was anticipated, reflecting ongoing challenges between the company and state policies.
Chevron currently employs around 7,000 people in Houston and approximately 2,000 in San Ramon.
The company operates several crude oil fields, technical facilities, and refineries, and supplies more than 1,800 retail stations in California.
The company has faced several controversies in California, including a significant 2012 refinery explosion in Richmond that led to a $2 million fine and additional oversight.
Recently, the Richmond refinery has been plagued by flaring incidents, and a proposed tax measure aims to address pollution from the refinery.
Additionally, Chevron faced a $63 million verdict last month related to environmental concerns.
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U.S. Representative Mark DeSaulnier, whose district includes San Ramon, expressed disappointment but not surprise at Chevron’s decision. He had previously encouraged the company to invest more in clean energy sources.
The Bay Area Council criticized local and state leaders for creating a challenging business environment in California, attributing the exodus of companies to high costs and litigation risks.