Chevron is relocating to Texas, deserting California, its home state for more than 140 years, where the business climate has soured for oil companies.
The second-largest U.S. oil company said Friday it plans to move its global headquarters to Houston, the U.S. energy industry capital. Chevron has built a stronghold of about 7,000 employees there, partly from a matriculation of executives and white-collar workers decamping from California.
The relocation plans come weeks after billionaire Elon Musk said X and SpaceX would move their headquarters to Austin, out of California. Musk had moved Tesla’s headquarters to Texas a few years ago. Several other large U.S. companies, including Hewlett Packard Enterprise and Oracle, have moved from blue states such as California to red states such as Texas.
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Chevron said in January it would write down as much as $4 billion in assets, mostly in California, citing regulatory challenges there. At the time, it warned against California’s so-called margin penalty, which seeks to limit profits from the state’s refiners to prevent alleged price gouging. Democratic Gov. Gavin Newsom signed it into law last year.
