What Chevron’s move to Houston means for the energy capital

HOUSTON – The Houston Chronicle reports the nation’s second-largest oil company said Friday it planned to move its headquarters to Houston from San Ramon, Calif., later this year, consolidating even more big oil industry power in the nation’s energy capital. Chevron follows Exxon Mobil, the nation’s largest oil company, which last year moved its headquarters to its Houston campus from Irving. “Texas offers a business-friendly environment, a more affordable cost of living, and better proximity to key counterparts in the service sector, our industry and academia,” the company said in a statement. “We are currently in the process of evaluating which positions will relocate, and which positions will remain in San Ramon to support our California operations. We expect to complete this evaluation before the end of the year.”

Chevron’s decision follows a surge of punitive policy changes for the oil industry in California following Gov. Gavin Newsom’s 2022 climate commitments that promised to quicken the state’s shift to renewable energy. At the time, Newsom said the state was in the business of “holding Big Oil accountable.” The following year, California Attorney General Rob Bonta filed a lawsuit against Chevron, four other oil and gas majors and the American Petroleum Institute alleging a years-long climate change deception campaign in the state. “We have previously stated that we believe state policy makers have pursued policies that raise costs and consumer prices, creating a hardship for all Californians, especially those who can least afford it,” the Chevron statement said. “These policies have also made California investment unappealing compared with opportunities elsewhere in the U.S. and globally.” Andy Lipow, president of Lipow Oil Associates in Houston, said Chevron, which has a major refining presence in California, “continues to be at odds with the California regulators and the new state legislation that is impacting all companies operating in California. The state of Texas is much friendlier to the energy business and their moving to the state reflects that.”