The Chevron Corporation announced on Friday that it would be relocating its headquarters from San Ramon, California to Houston, Texas before the end of 2024.
The oil giant has been in a feud with California Governor Gavin Newsom and other state politicians over climate change concerns. In 2023, the Golden State sued the company.
Why Were Chevron Sued?
In 2023, California Attorney General Rob Bonta filed a lawsuit against five big oil companies, including Chevron, for misleading the public about climate change and engaging in harmful environmental policies.
Bonta argued that Chevron had known for decades that burning fossil fuels contributes to climate change but had misled the public about this fact.
Bonta Condemns Chevron
In his lawsuit AG Bonta, wrote, “Oil and gas companies have privately known the truth for decades — that the burning of fossil fuels leads to climate change — but have fed us lies and mistruths to further their record-breaking profits at the expense of our environment. Enough is enough.”
He added, “With our lawsuit, California becomes the largest geographic area and the largest economy to take these giant oil companies to court.”
Chevron Confirms Politics is Behind Move
Chevron CEO Mike Wirth confirmed that the company was leaving California after 140 years due to disagreements with the state over policy.
“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 said.
California Policies Condemned
The Bay Area Council, a regional business advocacy group, pointed blamed at elected leaders in California for pushing Chevron out of the state.
“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.
Chevron’s History in California
Chevron has operated its HQ from San Ramon, California since 2002. It was previously headquartered in San Francisco, where it had been since 1879.
Now, Chevron will be headquartered in Houston, where it already has thousands of employees.
Chevron Release Statement
In a statement following the announcement, Chevron said they would complete the move before the end of 2024 “to co-locate with other senior leaders and enable better collaboration and engagement with executives, employees, and business partners.”
They added, “The company expects all corporate functions to migrate to Houston over the next five years. Positions in support of the company’s California operations will remain in San Ramon.”
Newsom Fires Back at Chevron
A spokesperson for Governor Gavin Newsom (D-CA) said, “This announcement is the logical culmination of a long process that has repeatedly been foreshadowed by Chevron.”
They added, “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.”
Representative Condemns Chevron
Democratic Representative Mark DeSaulnier said he was “disappointed, but not surprised, to see Chevron’s announcement that it will be leaving San Ramon.”
He added, “For years I have encouraged Chevron to be a diverse energy company investing in clean renewable sources of energy…Unfortunately, these efforts have been much less successful than I had hoped and, in many ways, Chevron left California years ago.”
Chevron Moves Comes After Elon Musk Announcement
The Chevron announcement comes just a fortnight after SpaceX CEO Elon Musk announced his intentions to move his HQ from California to Texas in opposition to pro-trans legislation signed by Gov. Newsom to safeguard vulnerable children.
In response to the legislation, Musk said, “This is the final straw. Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase.”
Chevron’s California Spill: Environmental Disaster Unfolds
Chevron experienced a major oil spill in California in 2021. The spill released over 600 gallons of oil into the San Francisco Bay.
Environmental agencies responded quickly to contain the damage. This incident highlighted ongoing concerns about offshore drilling safety.
Historical Context: Century-Long California Presence Ends
Chevron’s roots in California date back to 1879. The company, originally Standard Oil of California, shaped the state’s oil industry.
Chevron’s departure marks the end of a 144-year presence. This move reflects broader trends of companies leaving California.
Economic Impact: California Loses Energy Giant
Chevron’s relocation represents a significant economic loss for California. The company contributed millions in tax revenue annually.
Local businesses near the former headquarters will likely feel the impact. This move may influence other corporations considering relocation.
Environmental Legacy: Cleanup Efforts Continue
Chevron faces ongoing environmental challenges from past operations. The company has spent billions on cleanup efforts.
Long-term effects of oil spills persist in affected ecosystems. Environmental groups continue to monitor Chevron’s remediation progress.
Future Outlook: Chevron’s Strategy Amid Energy Transition
Chevron balances traditional oil operations with renewable investments. The company pledges to reduce carbon emissions significantly by 2050.
Relocating to Texas may influence Chevron’s energy transition plans. Investors watch closely as Chevron navigates changing energy landscapes.
