Yet another company headquartered in California has announced that it will be relocating out of the state.
Chevron announced on Friday that it plans to relocate its corporate headquarters from San Ramon, California, to Houston, Texas. The transition is expected to take place over the next five years.
“The company expects all corporate functions to migrate to Houston over the next five years,” Chevron said in a statement. “Positions in support of the company’s California operations will remain in San Ramon.”
Chevron currently employs about 2,000 people in San Ramon and 7,000 in Houston. CEO Mike Wirth and Vice Chairman Mark Nelson stated that the move to Houston will become official on January 1 in order to “co-locate with other senior leaders and enable better collaboration and engagement with executives, employees, and business partners.”
This decision comes in the wake of the company seeing a significant decrease in reported earnings. Chevron’s reported earnings in its second quarter was $4.4 billion, well below its $6 billion from one year prior.
It also comes following a California lawsuit filed last year against multiple oil companies, including Chevron, over climate change concerns. The state has been aggressively pushing towards renewable energy and away from fossil fuels.
In response to the announcement, Texas Governor Greg Abbott applauded the decision. “Texas is your true home,” Abbott wrote in a post on X. “Drill baby drill.”
Chevron’s decision follows a trend of major companies relocating specifically from California to Texas. Companies like Elon Musk’s Tesla, X, and SpaceX, along with tech giants Oracle and Hewlett Packard Enterprise, have all announced their departure from California in recent years. Musk in particular cited California’s radical left-wing policies initiatives as a driving factor in his decision to relocate his companies.
