The Chevron Corp.’s move to Houston from California, where it had been based for 145 years, will be advantageous in many ways both to the company and Texas.
Among other benefits, the move gets Chevron out of the very hostile regulatory environment under which it had long labored at San Ramon, Calif., 33 miles east of San Francisco.
Organized as Pacific Coast Oil in 1879, the energy behemoth will transfer its headquarters to Houston by the end of this year, company officials have announced.
Odessa oilman Kirk Edwards, State Rep. Brooks Landgraf and Waco economist Ray Perryman say the move is no surprise.
“Chevron moving their headquarters to Texas from California is a huge victory for the energy and social policies of Texas versus California,” Edwards said. “Can you imagine owning a $277-billion dollar company and yet being ridiculed and derided at every turn by your home state politicians?
“Not to mention being named in crazy environmental lawsuits and taxed into oblivion by those exact same politicians? I would be moving away from there, too.”
Edwards said Texas is a natural home for Chevron with its huge oil and gas base in Texas along with a plentiful supply of workers educated in the exact professions that Chevron needs at Texas’ upper-level college institutions.
“I am proud for both our Texas state leaders and Chevron management for making the correct decision to come here,” he said. “It is a win-win for them both.”
Landgraf said Texas is proud to welcome Chevron’s corporate headquarters to the Lone Star State.
“This move reaffirms what we’ve always known: Texas is the premier destination for businesses, especially in the oil and gas industry,” Landgraf said. “With our pro-business policies, low taxes and strong commitment to energy independence Texas provides the ideal environment for companies to thrive in.”
The Odessa Republican said Chevron’s decision to relocate here “also underscores the undeniable advantages of operating in a state that fully supports and champions the energy sector.
“I’m confident their presence will not only strengthen partnerships with other major companies but will also fuel the continued success and growth of our energy industry,” Landgraf said. “As a global energy powerhouse, Texas continues to attract major investments and this development brings even more good-paying jobs to hardworking Texans, supporting families and communities across the state, especially in the Permian Basin.
“By leading the way in innovation and collaboration among energy industry leaders we are building a stronger economy and ensuring that Texas remains the best place in the nation to live, work and raise a family.”
Perryman said Chevron is the latest in a long list of companies moving to Texas, many of them from California.
“In this particular instance the company wanted to consolidate employees and it already had about 7,000 workers in Texas,” Perryman said. “Thus the move makes sense from an efficiency perspective.”
Moreover, he said, Chevron has been acquiring shale resources of late and Texas is the epicenter of this type of production.
“In addition, the regulatory environment in California is increasingly challenging and the costs and risks of doing business there are higher than those found in Texas for many sectors including energy,” Perryman said. “Chevron has a long history in California and it resisted the move due to that fact and its assets there.
“However, the firm recently wrote down California assets worth billions, which evidently was a key factor in the decision to move.”
Perryman said he would not anticipate that this move will affect Chevron’s policies with regard to energy production or its various climate initiatives as those are driven by larger forces than where the headquarters is located.
“It will, however, make them easier and more cost-effective to implement effectively,” he said.
