Chevron announced it was moving its headquarters from San Ramon to Houston, Texas. Chevron CEO Mike Wirth said the company differs from California on energy policy and regulation, leading it to depart from its California home of more than 140 years. "We believe California has a number of policies that raise costs, that hurt consumers, that discourage investment and ultimately we think that's not good for the economy in California and for consumers," Wirth told the Wall Street Journal.
CalMatters noted that “initially, Newsom posted on social media a video denouncing oil industry ‘price gouging,’ including a melty-face emoji characterizing the industry’s reaction to California’s efforts to dampen gas prices. But his office quickly took down the video and issued a statement saying Chevron’s announcement ‘is the logical culmination of a long process that has repeatedly been foreshadowed by Chevron.’”
The decision sparked reactions from various quarters, including Texas Governor Greg Abbott, who framed Chevron's move as rejecting California in favor of Texas.
The Bay Area Council, a business group typically supportive of Newsom, criticized the situation as emblematic of California’s increasingly hostile business environment. "Chasing jobs and employers out of California is no way to run the economy," said the Council's president, Jim Wunderman. “It’s an embarrassment for California that we’ve lost so many global companies because of misguided policies that make it incredibly difficult to do business here. California’s elected leaders need to take stock of the decisions they’re making that affect millions of families and workers, impact the state budget and have grave consequences for the future economic health of this state.”
This situation underscores the detrimental effects of the state's policy attacks on businesses, particularly in the oil industry. As the political landscape continues to shift, the people of California will bear the brunt of these decisions. Workers in the oil sector will face job losses, communities will suffer from reduced services funded by industry revenue, and consumers will endure higher gas prices, elevated food costs, and increased taxes to compensate for the declining fiscal contributions of these businesses.
Wirth's remarks about the adverse impact of California's energy policies on costs, investment, and the economy highlight a critical issue. The departure of such a longstanding corporate resident, combined with the criticism from groups like the Bay Area Council, reflects a growing discontent with the state's business environment. If California's leaders do not reconsider their approach, companies moving to more business-friendly states will likely continue, worsening the economic challenges for millions of Californians.
CIPA CEO Rock Zierman appeared on KERN radio Friday to discuss the Chevron departure. Zierman emphasized that California’s overall business climate is the chief cause of the loss. Chevron joins hundreds of companies that have either relocated their headquarters or moved a significant number of employees to other states including Oracle, Space X, Tesla, Hewlett Packard, Disney, and Toyota. Zierman noted that CEO Magazine ranked California dead last amongst CEO’s as the best place to conduct business in America. Texas ranked first.