Chevron Chairman and CEO Mike Wirth sits down with FOX Business’ Maria Bartiromo to discuss America’s energy agenda, data center demand and the regulatory environment.
Chevron Notice It said last week it would move its corporate headquarters from California to Texas in part because it was becoming increasingly difficult to do business in California, a Chevron executive said Thursday.
Andy Walz, Chevron’s president of Americas products, told reporters the headquarters move comes after the company had gradually moved a number of employees from its San Ramon headquarters to new headquarters in Texas in recent years as their hold on the Golden State was becoming untenable.
“We’ve done this because California is a tough place to do business,” he said. “It’s a tough place to recruit people. It’s a tough place to move employees — a lot of our employees move through the company, they get experience in different geographies, different locations, and we have a lot of people who won’t move in California. That makes it difficult.”
“We’ve been moving the company’s employee base to Houston for a long time. This is another step on that path,” Walz said. “We’re doing this because it’s going to drive better performance for Chevron. Today, our management teams are spread across two different states, we’re not together as much, so there’s efficiency, there’s effectiveness in doing this.”
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Chevron is moving its headquarters from California to Texas. – A Chevron gas station in Rodeo, California, on June 19, 2024. (Photo: David Paul Morris/Bloomberg via Getty Images / Getty Images)
“California is a difficult place to have a large employee base. It’s difficult. The cost of living is expensive. And we weren’t able to get employees who didn’t live there to move there, and that’s not sustainable for us, to be honest.” he explained.
| TICKER | Safety | The last one | AmENdmENT | Change % |
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| CVX | CHEVRON CORP. | 144.49 | +2.08 |
+1.46% |
Chevron’s plan for its headquarters transition is to move all corporate functions to Houston over the next five years, with Chairman and CEO Mike Wirth and Vice Chairman Mark Nelson. moving to Houston before the end of this year to be closer to other senior leaders.
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Chevron plans to maintain a significant presence in California as the headquarters moves through refineries, a retail network and other infrastructure. (iStock / iStock)
Walz emphasized that the company will continue to have a significant presence in California even after the relocation of headquarters is completed over the next five years.
“Chevron has a long history in California, we have a proud history. And we’re going to stay there, we’re not going away — we have two large refinerieswe have a large retail network, we have infrastructure across the country, and we still have an upstream business in the San Joaquin Valley. So we’re still going to have a lot of employees there, they’re going to stay there supporting that business,” Walz said.
He added that the move was emotional for some employees and that the company will offer moving packages and work with employees about their personal circumstances, but employees in roles supporting Chevron’s global operations will be in Houston at the end of the transition.
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Chevron is moving its corporate headquarters from San Ramon, California, to Houston, Texas. (iStock / iStock)
Walz explained that the move was not prompted by political considerations California’s tough regulations on companies in the oil and gas business, saying, “This is not politically motivated, we are trying to bring better business results.”
He noted that Texas has embraced the company’s move, and that being headquartered in a state that plays a leading role in the U.S. energy industry brings advantages from a corporate standpoint, while also giving employees a cost-of-living opportunity. more affordable.
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“I will tell you, in Texas, we are welcome. Our industry is welcome,” Walz explained. “This is where a lot of our competitors are, a lot of our suppliers, a lot of the people we do business with are here. It’s easy to walk down the street and talk to someone you’re doing business with. The policies are welcoming to companies. energy and honestly, it’s the lowest cost of living and works well here.