Chevron is relocating its headquarters from California to Texas.
Chevron is relocating its headquarters from California to Texas, joining a trend of companies moving to the Lone Star State in search of lower taxes and less stringent regulations.
Chevron has announced plans to relocate its headquarters from California to Texas, marking the latest major departure from the state due to concerns over excessive regulation. The second-largest U.S. oil company revealed on Friday that it will exit the state, where it has been established for nearly 150 years, following disputes with authorities over climate policies and penalties it argues make California “closed for business.”
Chevron's move to relocate its headquarters from California to Texas reflects a broader trend of companies leaving California in favor of Texas, drawn by its lower taxes and more lenient regulations. The second-largest oil company in the U.S. announced on Friday that it will leave California, where it has been established for nearly 150 years, due to disputes over climate policies and regulations it considers overly restrictive.
Chevron’s CEO Mike Wirth and vice-chair Mark Nelson will oversee the transition from San Ramon, California, to Houston, Texas by the end of the year. This relocation is intended to enhance collaboration with executives, employees, and business partners. The company, already a major player in the Texas oil industry, employs about 7,000 people in Houston, known as the “energy capital of the world.”
The move will have minimal immediate impact on Chevron’s approximately 2,000 employees in San Ramon, with a gradual shift of all corporate functions to Houston over the next five years. Positions related to California operations will remain in San Ramon. Texas Governor Greg Abbott welcomed Chevron’s move, emphasizing the state's favorable business environment, which includes no corporate tax compared to California’s 9 percent rate.
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Since 2015, over 300 companies have relocated to Texas, many from California, including notable names like Tesla and HP. This influx has contributed to Texas becoming the eighth largest economy globally. Chevron's departure from California is partly due to the state's increasing regulatory pressures and legal challenges. In January, Chevron criticized California’s regulatory environment and wrote down the value of its assets there. The company has also clashed with California over a new law intended to curb alleged price gouging by oil companies, arguing that such measures discourage investment and signal a hostile business environment.
Chevron’s announcement coincides with a drop in its second-quarter net income to $4.4 billion, down from $6 billion a year ago, reflecting weaker refining margins.