California Started the Feud with a Lawsuit
The issues between the state and the company began last year when it was sued along with several other energy companies over allegations that oil companies have been deliberately increasing global temperatures and creating mass pollution in the face of corporate profits.
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Chevron decided that the hassle was not wroth staying in the state any longer and has pulled out all interest.
Chevron CEO Delivered a Statement
Mike Wirth, Chevron CEO, said that the company’s mission differed from the path that California seeks to go down for its energy policy and regulation. The company will starkly depart from the state after making it home for over 140 years.
Source: @CERAWeek/X
Wirth told the Wall Street Journal, “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.”
The Bay Area
Since 2002, Chevron has made San Ramon its headquarters. The town is just 34 miles east of San Francisco in Contra Costa County and is home to several big-name tech businesses.
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The company moved to the Easy Bay after being located inside of San Francisco since 1879, back when it was called the Pacific Coast Oil company.
The Big Move to Texas
The company will move its headquarters to Houston, Texas, where it already has a large office and thousands of full-time employees.
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The move to a state with much lower corporate taxes and less of an interest in environmental affairs follows a trend of big-name companies making the move. Recently, Elon Musk moved the headquarters of his companies X, SpaceX, and Tesla to Austin.
The Company Issued a Statement
After the announcement, the company issued a statement about the relocation that would take place at the end of 2024.
Source: @libsoftiktok/X
The move aims to “co-locate with other senior leaders and enable better collaboration and engagement with executives, employees, and business partners.”
Employees Are Expected to Move
In a full statement issued on the move, the company noted that, “There will be minimal immediate relocation impacts to other employees currently based in San Ramon.”
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“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.”
Other Companies Leaving California
In recent years, a mass exodus of companies has occurred in California. Other mega crops that have left the Golden State for better tax rates in Texas include Oracle, Hewlett Packard Enterprise, Charles Schwab, and Toyota Motor North America.
Source: iStock
Earlier this year, Texas was ranked No. 1 for new jobs created in businesses relocating to the state, most of which were from California. More than 25,000 businesses and 281,000 jobs came to the Lone Star State, compared to 18,000 businesses and 179,000 leaving the state. However, it brought discord among the local residents of Austin, who saw their housing costs double in just a few years.
Gov. Greg Abbott Is Excited
In a social media post, Texas Gov. Greg Abbott proclaimed his excitement about Chevron’s decision to leave the state.
Source: @TexasTravesty/X
“WELCOME HOME Chevron! Texas is your true home. Drill baby drill,” Abbott said. Also, Houston Mayor John Whitmire said in a post on X that the move will be “Great for Houston!”
A Long Time Coming
A spokesperson in Governor Gavin Newsom’s office said the move had been coming for a long time. However, the company will retain some of the crude oil fields and 1,800 retail stations in California.
Source: @PBS NewsHour/YouTube
“This announcement is the logical culmination of a long process that has repeatedly been foreshadowed by Chevron,” the spokesperson said. “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.”
Richmond Refinery Issues
In 2012, a massive fire broke out in a Cheron refinery in Richmond, California. The event sent thousands of people to the hospital after suffering from prolonged smoke inhalation.
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After the fire, the company pleaded no contest to criminal charges and agreed to increase oversight at their refineries and pay more than $2 million in fines and restitution to the people affected.
Reaction to the Move
“Disappointed, but not surprised, to see Chevron’s announcement that it will be leaving San Ramon,” said U.S. Rep. Mark DeSaulnier (D-Walnut Creek). His district includes the city of San Ramon.
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The Bay Area council swiftly blamed the local and state elected leaders for making bad policies that pushed out big companies like Chevron from the area. “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.