\n
![](\"https:\/\/fortune.com\/img-assets\/wp-content\/uploads\/2024\/08\/GettyImages-2151239802-e1722617658143.jpg?w=2048\")
<\/p>\n [ad_1]
\n<\/p>\n
Chevron<\/a> and California legislators have long butted heads over energy and climate policies: The oil giant blamed a $4 billion writedown<\/a> on the state\u2019s tightening regulations as it seeks to wean itself off fossil fuels. Chevron Americas Products president Andy Walz said in January, California was playing a \u201cdangerous game<\/a>\u201d in response to the climate policies. Two months later, Chevron agreed to pay the state over $13 million in fines<\/a> for dozens of oil spills since 2018.<\/p>\n But as the second-largest oil company in the U.S. plans to complete its move<\/a> from San Ramon, California, to Houston, Texas, this year, CEO Mike Wirth has pushed back on politics being the deciding factor for the move.<\/p>\n \u201cThis isn\u2019t a move about politics,\u201d Wirth told Bloomberg TV<\/em><\/a> on Friday. \u201cIt\u2019s a move about what\u2019s good for our company to compete and perform.\u201d<\/p>\n Chevron\u2019s relocation has been anticipated for years<\/a>. Wirth said the company has deep roots in the state with its suppliers, vendors, and partnerships, and finalizing the move would allow Chevron to be \u201ccloser to the core epicenter of our industry.\u201d Houston, dubbed the energy capital of the world, counts 4,700 energy-related companies<\/a> among its business operations, including Chevron\u2019s competitors ExxonMobil<\/a> and BP<\/a>.\u00a0<\/p>\n Chevron first made its home in the Bay Area in the 1870s before moving to San Ramon in 1999. Since 2019, when the company began a reorganization effort, its California employee population has stagnated at about 2,000<\/a>, while its Texas contingency has swelled to around 7,000.<\/p>\n It\u2019s a continuation of a mass exodus<\/a> of corporations from California to Texas, where a lower cost of operations and living and lack of income tax are draws for large companies. Military aircraft manufacturer Aeromax Industries Inc., software company Oracle<\/a>, and Elon Musk\u2019s SpaceX<\/a> and X<\/a> are all once California-based companies that now count Texas as their home. Some of these relocations go beyond just business strategy. Musk\u2019s move was explicitly political<\/a>, following the passage of a California law banning schools from requiring teachers to disclose a change to a student\u2019s sexual orientation or gender identity to their parents.<\/p>\n But despite Wirth emphasizing the practical business elements of the relocation, he hasn\u2019t previously shied away from criticizing California efforts to regulate Big Oil. In response to a September 2023 California lawsuit<\/a> accusing industry giants of lying to the public about the impact of climate change, Wirth said, \u201cClimate change is a global issue. It calls for a coordinated global policy response, not piecemeal litigation that benefits attorneys and politicians.\u201d<\/p>\n Even as Wirth insisted politics did not drive Chevron\u2019s relocation, he couldn\u2019t deny his belief that California is hostile to the company.<\/p>\n \u201cWe advocate for policies that keep prices low, that keep supply reliable, that encourage an investment, and California\u2019s advanced policies that do the opposite,\u201d he said. \u201cAnd so we\u2019ve certainly expressed our view, so we don\u2019t think that\u2019s good for the California economy.\u201d<\/p>\n Chevron did not respond to Fortune<\/em>\u2019s request for comment.<\/p>\n<\/div>\n\nRecommended Newsletter: <\/strong>CEO Daily provides key context for the news leaders need to know from across the world of business. Every weekday morning, more than 125,000 readers trust CEO Daily for insights about\u2013and from inside\u2013the C-suite. Subscribe Now<\/a>.<\/div>\n<\/div>\n