The U.S. oil and gas giant Chevron has announced plans to relocate its corporate headquarters from San Ramon, California, to Houston, Texas. The move, set to take place over the next five years, represents a major shift for the company with deep roots in California.

According to the company’s release, CEO Mike Wirth and vice-chairman Mark Nelson will move to Houston by year-end, with other employees following gradually. Chevron currently employs 2,000 people in California and 7,000 in Texas.

California’s Changing Energy Landscape Drives Decision

The relocation appears to reflect the declining presence of the oil industry in California, as state leaders push for a transition away from fossil fuels. Chevron’s history in California dates to 1879 with the founding of Pacific Coast Oil Company, which later became part of Standard Oil.

“California’s state leaders have made it increasingly clear that they no longer value the oil and gas industry,” notes industry expert David Blackmon, highlighting the state’s preference for importing oil and electricity while phasing out internal combustion engines.

Related Story: California Threatens Chevron for Withholding Gas Pricing Data

Chevron’s Growth Through Mergers and Acquisitions

Chevron has grown significantly through mergers and acquisitions over the past four decades, including the purchase of Gulf Oil Company in 1984 and the merger with Texaco in 2001. Most recently, the company acquired Noble Energy for $13 billion in 2020 and entered a $53 billion all-stock deal with Hess Corp in 2023.

The move to Houston, long considered the capital of the U.S. oil and gas industry, seems a natural progression for Chevron as it adapts to changing industry dynamics and regulatory environments.

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