Chevron leaves California after 145 years and moves its headquarters to Texas.

The news of Chevron's departure from California after 145 years of operations has had a significant impact on the state and the U.S. energy industry. The oil company, which has established itself as the second largest in the country, has decided to move its corporate headquarters to Houston, Texas, a move that not only reflects a strategic change in its business model but also a deep disagreement with California's environmental regulations. The decision was announced this Friday by the company's CEO, Mike Wirth, who emphasized that centralizing operations in what he considers the energy capital of the United States is key to Chevron's future. Wirth did not shy away from justifying the move. In statements to CNBC, he underscored that several laws in California have raised operational costs, which he claims harms both consumers and the state's economy. "We believe these policies are not good for California or its residents," he stated, suggesting that the company is seeking a more business-friendly environment in Texas, where regulations are less stringent. This argument is not new; Chevron has been expressing its dissatisfaction with California's energy policies in recent years, especially in a context of growing concern about climate change. The climate of tension between the company and the state government intensified last year when Governor Gavin Newsom and Attorney General Rob Bonta filed a lawsuit against several oil companies, including Chevron, for the environmental damage they have caused over decades. In its defense, Chevron executives argued that the fight against climate change should be addressed through national and global policies and actions, rather than relying on state litigation. This incident underscores the growing confrontation between the energy sector and California authorities in their struggle for a more sustainable future. Despite the criticism and political tensions, Chevron has enjoyed record profits over the past two years, driven by rising fuel prices. However, the company has also faced a changing economic environment. In the first quarter of 2024, it reported profits of $5.5 billion, a 16% decrease compared to the same period the previous year, although it exceeded analysts' expectations. This contrast between financial success and increasing regulatory pressures highlights the dilemma the corporation faces as it navigates a complicated economic and political landscape. Chevron's decision to relocate does not occur in a vacuum; it adds to a broader pattern of companies moving their operations to Texas, drawing attention to the business environment in California. Recently, entrepreneur Elon Musk also announced his intention to move the offices of SpaceX and X to Texas, citing concerns about the state's educational policies. This trend could have broader implications for the California economy, which has been characterized by its innovation and dynamism but faces significant challenges in its relationship with the business sector. In response to Chevron's decision, Governor Newsom took to social media to point out that the move will not change the reality of the energy market. He reminded Californians that, despite industry claims, gasoline prices reached alarming levels just a few years ago, and that the blame did not lie with state taxes, which had not changed. According to Newsom, energy companies are manipulating market prices, leading to increased profits while consumers continue to suffer. The situation is further complicated by recent legislation in California aimed at controlling gasoline price manipulation. This law, which requires companies to report production costs and hydrocarbon imports, has been viewed as an attempt to increase transparency in a sector that has been criticized for its business practices. Chevron's refinery in El Segundo, one of the most polluting in the United States, has been highlighted not only for its environmental impact but also for its role in price manipulation. Chevron's exit raises questions about the future of the energy industry in California. With an economy that relies heavily on innovation and sustainability, the departure of one of the largest companies in the sector could have repercussions for employment and future investments in the region. Additionally, the state faces the challenge of balancing economic needs with environmental sustainability goals in an increasingly polarized political climate. Chevron's move is a reminder of the inherent tensions in the struggle between economic development and environmental protection. As the company seeks a more favorable environment for its operations, California will have to confront the realities of climate change and the challenges posed by a transforming energy market. Chevron's departure not only marks the end of an era for the company but also raises questions about the future of energy policy in one of the most progressive states in the United States.