Source: AFP
After more than 140 years in California, Chevron announced Friday it will move its corporate headquarters to Texas, in a move that drew applause from the southern state’s oil-loving politicians.
The oil company, once known as Standard Oil of California, will move its headquarters from San Ramon in Northern California to Houston, a global oil center and closer to major U.S. oil fields and petrochemical facilities.
CEO Mike Wirth and vice president Mark Nelson plan to move to Houston before the end of 2024, with all corporate operations moving to the Texas city within five years, Chevron said in a news release.
The company currently has approximately 7,000 employees in the Houston area and 2,000 in San Ramon. Chevron said it will keep some jobs in San Ramon tied to operations in California.
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The change reflects the two largest US states’ strikingly different approaches to energy, with California enacting aggressive goals to combat climate change, including electric vehicle mandates, and Texas championing conventional oil drilling.
Chevron’s website traces its history in California to 1879, when predecessor Pacific Coast Oil Co. founded in San Francisco
In September 2023, California officials, including Democratic Governor Gavin Newsom, announced a lawsuit against Chevron and four other oil giants for knowingly misleading the public about the dangers of climate change.
Wirth told CNBC that he disagrees with California’s overall approach to energy, saying the state is “discouraging investment in the energy that runs its economy,” hurting consumers.
But Wirth said the pivot was not primarily a “policy dispute” but a decision to place Chevron at the “center” of the energy world with proximity to suppliers and universities from which to recruit.
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Texas has become a major player in renewable energy, with major wind and solar projects, but the state’s Republican leadership embraced Chevron’s announcement in a nod to its continued support for traditional oil.
Gov. Greg Abbott posted “Welcome home Chevron!” on social media site X, adding: “Drill baby drill.”
Source: AFP
