Chevron, the second-largest U.S. oil company, is moving its headquarters to Houston, from California, formalizing a long-expected breakup with a state that has pushed aggressively to address climate change.
It is the latest example of businesses voting with their feet against politicians and regulators who want them to take swifter action to reduce the emissions that are heating the planet.
The state of California sued Chevron and other large oil companies last year, claiming that they misled the public about the risks of fossil fuels, whose extraction and use are leading causes of climate change.
Chevron’s CEO, Mike Wirth, criticized the lawsuit last year, saying in a Bloomberg Television interview that litigation was not the right approach.
“Climate change is a global issue,” Wirth said. “It calls for a coordinated global policy response, not piecemeal litigation that benefits attorneys and politicians.”
A spokesperson for California’s governor, Gavin Newsom, said Chevron’s planned move wasn’t a surprise. “We’re proud of California’s place as the leading creator of clean energy jobs — a critical part of our diverse, innovative and vibrant economy,” the spokesperson, Alex Stack, said.
Gov. Greg Abbott of Texas celebrated the company’s decision on social media site X. “WELCOME HOME Chevron!” he said. “Texas is your true home. Drill baby drill.”
Chevron’s ties to California date to the 1870s, and for much of the 20th century it was known as the Standard Oil Co. of California.
Yet for many years, Chevron’s center of gravity has been in the Houston area, where the company employs roughly 7,000 people, compared with around 2,000 at its current headquarters in San Ramon, near San Francisco.
Moving to Houston will “enable better collaboration and engagement both internally and externally,” Wirth said Friday.
Chevron’s announcement came as the company reported second-quarter earnings Friday that missed the expectations of Wall Street analysts. The company said profit fell 26%, to $4.4 billion, from the same period a year ago. Lower profit margins in its oil refining business hurt the company’s bottom line, even as higher oil and gas production lifted overall revenue.
Chevron said that its headquarters move would be effective Jan. 1 and that Wirth would relocate to Texas by the end of this year.
This article originally appeared in The New York Times.
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