Chevron announced on Friday (August 2) its decision to move its headquarters out of California. The oil giant stated that it will relocate its headquarters office from San Ramon, California, where it has been since 2002, to Houston, Texas. This marks the first time Chevron has moved its headquarters out of California in its over a hundred years of existence.
According to the company, Chevron’s Chairman and CEO Mike Wirth and Vice Chairman Mark Nelson will move to Houston by the end of 2024. The purpose of this move is to “work in the same location as other senior leaders, and to better collaborate and interact with executives, employees, and business partners.”
Over the next five years, other operational departments of the company will gradually transition. Chevron has stated that “positions supporting the company’s California operations will remain in San Ramon.”
Currently, there are approximately 2,000 employees working in San Ramon and 7,000 in Houston.
The Mayor’s Office in Houston expressed enthusiasm regarding the move, stating that it is “great news for Houston!”
It is speculated that the lawsuit filed last year by California against Chevron and four other major oil companies, along with an industry trade organization, regarding climate change, may have prompted the company’s move. California has been leaning more towards renewable energy policies.
In addition to Chevron, companies like Tesla, X, SpaceX, Oracle, and HP have also relocated their headquarters out of California in recent years.
In the announcement of the relocation on Friday, Chevron also disclosed the retirement of three senior executives and released its second-quarter earnings report.
Chevron reported a profit of $4.4 billion for the quarter, equating to earnings per share of $2.43. This is down from $6 billion reported in the same period last year.
According to data from the London Stock Exchange Group (LSEG), Chevron’s adjusted earnings totaled $4.7 billion, or $2.55 per share, falling short of Wall Street analysts’ expectations of $2.93 per share.