Chevron moving California headquarters to Texas
Chevron Corporation on Friday announced it is relocating company’s headquarters from San Ramon, California, to Houston, Texas – the latest in a string of companies to leave the Golden State.
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Chevron announced on Aug. 2 plans to relocate its corporate headquarters from San Ramon to Houston after 145 years in California.
In a press release on the company’s website, Chevron wrote that it “expects all corporate functions to migrate to Houston over the next five years” from its current headquarters in San Ramon but that there will be “minimal immediate relocation impacts.”
Chevron wrote that jobs related to its California business will stay in the Bay Area, the San Joaquin Valley and El Segundo. The number and type of jobs moving from Chevron’s California headquarters to Texas haven’t been finalized.
However, according to the press release, Chevron Chairman and CEO Mike Wirth and Vice Chairman Mark Nelson will move to Houston before the end of 2024 to co-locate with other senior leaders already in Texas.
Chevron has approximately 7,000 employees in Houston and 2,000 in San Ramon. The company operates crude oil fields, technical facilities and two refineries, supplying more than 1,800 gas stations in California.
“Chevron has a long and proud history in California. We remain committed to our investments in California with our crude oil fields, technical facilities, refineries, retail stations and renewable partnerships,” the company said in statement released to the media.
Texas Gov. Greg Abbott hailed Chevron’s decision to relocate in a social media post.
“WELCOME HOME Chevron! Texas is your true home. Drill baby drill,” Abbott said.
California Gov. Gavin Newsom’s spokesperson, Alex Stack, told the San Francisco Chronicle the relocation “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.”
Why did California sue Chevron?
In 2023, California sued Chevron and four other oil companies over what it said was a pattern of lying to the public about fossil fuel risks and causing billions of dollars in environmental damage.
In March 2024, Chevron has agreed to pay a record-setting $13 million to two California agencies in the wake of investigations by The Desert Sun and ProPublica of dozens of oil spills, and of lax enforcement by the state’s oil and gas division.
At least one of Chevron’s spills is still running 21 years after it began in a Kern County oilfield, although a state spokesperson said it has been reduced by 98% “from its peak.” The amount spilled from the site, dubbed GS-5, is larger than the Exxon Valdez disaster.
Separately in March, the fish and wildlife department announced a related settlement agreement totaling $7.5 million for Chevron spills in Kern County, also described as “the largest administrative fine in department history.”
Why is California moving away from gas-powered cars?
Under the groundbreaking state regulation approved in 2022, automakers will need to electrify fleets of new cars in coming years, starting with 35% of 2026 models sold, then 68% of 2030 models and 100% of 2035 models. Last year, electric vehicles comprised 18.8% of all new cars sold in California, up by 38% from 2021. Since the upcoming ban only applies to new vehicle sales, and with the average car staying on the road for well over a decade, gas cars will likely remain on the road for years after 2035, although in declining numbers.
Transportation contributes to the largest share of the state’s greenhouse gas emissions, and California’s fight against climate change will require a transformation of how we get around in the Golden State, from electric vehicles to better public transportation and more walkable and bikeable communities.
What other companies have moved from California?
Chevron isn’t the only corporation that has recently moved its headquarters out of California.
In July, Elon Musk announced he was moving SpaceX aerospace company from Hawthorne to Texas in protest of a state law signed by Newsom that prevents California schools from notifying parents if their children identify as transgender.
Other companies that moved to Texas from California in recent years include Oracle, Hewlett Packard Enterprise, Charles Schwab, and Toyota Motor North America.
Chevron will become the 24th Fortune 500 company to establish its headquarters in Houston.
“Chevron’s decision to relocate its headquarters underscores the compelling advantages that position Houston as the prime destination for leading energy companies today and for the future,” said Houston Chamber of Commerce Partnership President and CEO Steve Kean. “With deep roots in our region, Chevron is key player in establishing Houston as a global energy leader. This move will further enhance those efforts.”
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Publish date : 2024-08-03 07:05:00
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