Chevron moves headquarters from California to oil-loving Texas

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After more than 140 years in California, Chevron announced Friday that it is moving its headquarters to Texas, a move that has been applauded by politicians in the oil-loving Southern state.

The oil company once known as Standard Oil of California will move its headquarters from San Ramon in northern California to Houston, which has long been a global oil center and is closer to some of the nation’s largest oil fields and petrochemical plants.

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

The company currently employs about 7,000 in the Houston area and 2,000 in San Ramon. Chevron said it will retain some jobs in San Ramon tied to its California operations.

The shift reflects the vastly different approaches to energy in the nation’s two largest states, with California adopting ambitious climate change goals, including mandating electric vehicles, while Texas favors conventional oil drilling.

Chevron’s website says its history in California dates back to 1879, when a predecessor to Pacific Coast Oil Co. was founded in San Francisco.

In September 2023, California officials, including Democratic Gov. 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 powers its economy,” which hurts consumers.

But Wirth said the change was not primarily due to a “political dispute” but rather a decision to place Chevron at the “epicenter” of the energy world, close to suppliers and universities where workers could be recruited.

Texas has become a major player in renewable energy with major wind and solar projects, but Republican state leaders welcomed Chevron’s announcement, emphasizing that the company continues to support traditional oil technologies.

Governor Greg Abbott posted “Welcome home Chevron!” on social media site X, adding, “Practice, baby, practice.”

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