Chevron Corp. announced on Friday that it will also move its headquarters from California to Texas, just weeks after Elon Musk announced that SpaceX and X were fleeing for the Lone Star State.
The news came as the company reported its second-quarter earnings on Friday, which fell far short of profit expectations.
According to the company, Chevron’s headquarters will move from San Ramon, California, to Houston, Texas.
“Houston is the epicenter of our industry,” Chevron CEO Mike Wirth told CNBC’s “Squawk Box.” “We’ve had our headquarters gradually growing in Texas and gradually pulling down in California. This is a continuation of a trend that has been underway for some time.”
As the Financial Times points out, Chevron has long criticized California’s Democratic leadership for its stance on the oil industry. In January, Chevron condemned what it described as an “increasingly harsh regulatory environment” and wrote down its assets in the state.
California has sued oil companies, including Chevron, accusing them of misleading customers about the dangers of climate change, accused them of price gouging, and has tried to enforce a penalty on profits.
The company expects all corporate functions to transition to Houston over the next five years, with positions in support of its California operations remaining in San Ramon. Chevron currently has about 7,000 employees in the Houston area and approximately 2,000 employees in San Ramon.
The company’s vast operations include crude oil fields, technical facilities, and two refineries and supplies more than 1,800 retail stations in California.
Last month, SpaceX CEO and X owner Elon Musk announced he plans to move the headquarters of both companies from California to Texas. The SpaceX headquarters will relocate from Hawthorne in metro Los Angeles to Starbase, Texas, while the X HQ will move from San Francisco to Austin.
Musk’s moves were not necessarily business motivated as the billionaire blamed Gov. Gavin Newsom’s signing of a law barring California school districts from notifying parents of a child’s gender identification as the “final straw.”
The Governor’s Office responded to Chevron’s announcement Friday:
“This announcement is the logical culmination of a long process that has repeatedly been foreshadowed by Chevron,” a statement read. “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.”
