Chevron Ends 150 Year Relationship With California, Announces Move to a Red State

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Chevron, America’s second-largest oil company, is packing its bags and heading to Houston, according to a report from the New York Times.

This move marks the end of a 150-year relationship with California, a state that’s been pushing hard against fossil fuels in its fight against climate change.

The oil giant’s roots in California go back to the 1870s.

But times are changing.

Chevron already has about 7,000 employees in Houston, compared to just 2,000 at its current San Ramon headquarters near San Francisco.

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This shift isn’t happening in a vacuum.

California sued Chevron and other big oil companies last year, claiming they misled the public about fossil fuel risks.

Chevron’s CEO, Mike Wirth, wasn’t happy about this, to say the least. It was pretty much the last straw.

Wirth told Bloomberg TV: “Climate change is a global issue. It calls for a coordinated global policy response, not piecemeal litigation that benefits attorneys and politicians.”

Chevron isn’t alone in this Texas migration. Exxon Mobil recently moved its headquarters from Dallas to Houston too. It’s like watching a game of musical chairs, but with oil companies all ending up in the same seat.

This exodus comes as Chevron faces some financial headwinds. Their second-quarter profits dropped 26% to $4.4 billion, falling short of Wall Street’s expectations. Meanwhile, Exxon Mobil’s profits rose 17% to $9.2 billion, beating analyst forecasts.

Chevron’s move is set for January 1, with CEO Wirth heading to Texas by year’s end.

The company already sold its San Ramon campus last year and has been renting office space since.

As California doubles down on its anti-fossil fuel stance and crazy regulatory environment we fully expect to see more major companies follow Chevron’s lead.

The Golden State’s aggressive climate policies and increasing regulations are creating a challenging environment for almost every kind of business.

Just ask Elon Musk who last month announced two of his companies, X and SpaceX, would be moving their headquarters from California to Texas.

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California Governor Gavin Newsom has done a terrific job persuading companies large and small to leave the state for greener and more business friendly pastures.