Chevron to move HQ from California to oil-loving Texas

After more than 140 years in California, Chevron announced Friday that it will move its corporate headquarters to Texas in a shift that drew applause from the southern state's oil-loving politicians.

The oil company, once known as Standard Oil of California, will relocate its corporate headquarters from San Ramon in Northern California to Houston, long a global petroleum center and nearer to major US oilfields and petrochemical facilities.

Chief Executive Mike Wirth and Vice Chairman Mark Nelson plan to move to Houston before the end of 2024, with all corporate functions transitioning to the Texas city within five years, Chevron said in a press release.

The company currently has about 7,000 employees in the Houston area and 2,000 in San Ramon. Chevron said it will keep some jobs in San Ramon connected to California operations.

The shift reflects the strikingly different approaches of the biggest two US states towards energy, with California enacting aggressive targets to combat climate change, including electric vehicle mandates, and Texas championing conventional oil drilling.

Chevron's website dates its history in California to 1879 when predecessor Pacific Coast Oil Co. was 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 on the dangers of climate change.

Wirth told CNBC that he disagreed with California's overall approach to energy, saying the state is "discouraging investment in the energy that runs its economy," harming consumers.

But Wirth said the pivot was not primarily a "dispute over politics," but a decision to place Chevron at the "epicenter" of the energy world with proximity to suppliers and universities from which to recruit.

Texas has become a major player in renewable energy, with significant wind and solar projects, but the state's Republican leadership embraced Chevron's announcement with a nod to its continued support of traditional petroleum.

Governor Greg Abbott posted "Welcome home Chevron!" on the social media site X, adding: "Drill baby drill."