Oil giant Chevron is leaving California for Texas, citing the Golden State's policies as a key reason for the move. The company has had a presence in California for over 140 years, but it will relocate its headquarters to Houston by the end of 2024. Chevron CEO Mike Wirth said the move is not about politics, but rather about being closer to the core of the company's industry in Houston, which is known as the energy capital of the world.
Chevron currently has about 7,000 employees in the Houston area and about 2,000 in San Ramon, California. The company sold its San Ramon headquarters in 2022 and leased space in the Bishop Ranch business park. Some corporate functions will remain in San Ramon to support Chevron's operations in California, which include crude oil fields, technical facilities, and two refineries that supply more than 1,800 retail stations in the state.
The move comes as Chevron and other oil companies have faced lawsuits from California over their environmental practices and the impact of fossil fuels on climate change. In September 2023, the state sued Chevron and four other major oil companies, alleging that they have caused billions of dollars in damage and deceived the public about the risks of fossil fuels.
Chevron's decision to move its headquarters to Texas follows a trend of companies leaving California for states with lower costs of living and doing business. Elon Musk's SpaceX and X, formerly Twitter, also announced plans to relocate to Texas in 2024.