Chevron Corporation has announced its decision to relocate its headquarters from San Ramon, California, to Houston, Texas, marking the end of an era spanning over 140 years in the Golden State.
This move is the latest chapter in Chevron’s contentious relationship with California’s regulatory landscape. The oil behemoth, often at odds with state regulators and politicians over fossil fuels and climate policy, was among the companies sued by California last year. The state accused these oil giants of misleading the public about the environmental risks associated with fossil fuels.
Chevron’s CEO, Mike Wirth, articulated the company’s stance, emphasizing a fundamental clash with California’s energy policies. “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,” Wirth explained to the Wall Street Journal.
Since 2002, Chevron has operated its headquarters from San Ramon, located 34 miles east of San Francisco. Prior to that, it was headquartered in San Francisco since the incorporation of the Pacific Coast Oil Company in 1879. However, the shifting economic and regulatory tides have prompted Chevron to move its headquarters to Houston, where it already employs several thousand workers.
In a statement issued today, Chevron announced that the relocation would be completed before the end of 2024. The company stated that the move aims to “co-locate with other senior leaders and enable better collaboration and engagement with executives, employees, and business partners.”
While Chevron emphasized that the immediate impact on its San Ramon employees would be minimal, it indicated that all corporate functions would transition to Houston over the next five years. Positions supporting California operations will remain in San Ramon.
Chevron’s relocation is part of a broader exodus of businesses from California to Texas, a trend highlighted by Elon Musk’s recent decision to move the headquarters of his social media company X and SpaceX to Texas. Musk had previously relocated Tesla’s headquarters from Palo Alto to Austin in 2021. Other notable companies, including Oracle, Hewlett Packard Enterprise, Charles Schwab, and Toyota Motor North America, have also made similar moves.
Texas Governor Greg Abbott welcomed Chevron’s decision with open arms, tweeting, “WELCOME HOME Chevron! Texas is your true home. Drill baby drill.”
Houston Mayor John Whitmire’s office also celebrated the announcement, calling it “Great for Houston!”
California Governor Gavin Newsom’s office expressed a resigned acceptance of the move, stating, “This announcement is the logical culmination of a long process that has repeatedly been foreshadowed by Chevron. We’re proud of California’s place as the leading creator of clean energy jobs — a critical part of our diverse, innovative, and vibrant economy.”
Chevron’s history in California is not without its blemishes. In 2012, an explosion and fire at Chevron’s refinery in Richmond, California, led to criminal charges, additional oversight, and $2 million in fines and restitution. More recently, the Richmond refinery has been plagued by flaring incidents, prompting stricter emissions standards and proposed local taxes on oil processed at the facility.
U.S. Representative Mark DeSaulnier, whose district includes San Ramon, expressed disappointment but not surprise at Chevron’s departure. He criticized the company for not investing more in clean renewable energy sources, reflecting California’s transition towards sustainable energy.
The Bay Area Council, a regional business advocacy group, blamed California’s economic and regulatory environment for driving Chevron away. “They did that because it costs more money here, more litigation risk, HR risk, and a bunch of other factors that make California less attractive for doing business,” said Bay Area Council President and CEO Jim Wunderman.
As Chevron prepares to leave its historical home, the impact of this decision will reverberate across California’s economic and environmental landscape, signaling a significant shift in the ongoing debate over energy policy and corporate responsibility.
