Chevron to relocate its headquarters out of California

Oil giant, Chevron, has on Friday, August 2, 2024, announced that it will move its corporate offices from San Ramon, where they’ve been since 2002, to Houston.

This marks the first time Chevron will be headquartered outside of California since its founding over a century ago.

Chevron chairman and CEO Mike Wirth and vice chairman Mark Nelson will move to Houston by the end of 2024.

In addition, other corporate operations will gradually relocate over the next five years.

The company stated that some roles will remain at the San Ramon offices, specifically those needed to support its “crude oil fields, technical facilities, and two refineries and supplies more than 1,800 retail stations in California.”

The oil giant currently has around 2,000 employees in San Ramon and about 7,000 in the Houston area.

 Chevron is the latest company to leave California due to higher operating costs and difficulties in complying with the state’s strict regulations.

Chevron’s departure from the Bay Area follows Elon Musk’s announcement last month that SpaceX and X (formerly Twitter) will also be moving to Texas.

Why are SpaceX and X moving to Texas?

Musk said “the final straw” was the SAFETY Act, a new law signed by California Governor Gavin Newsom.

This law will stop school districts from requiring teachers to tell parents if a child wants to be identified by a different gender.

“Because of this law and the many others that preceded it, attacking both families and companies.

“SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas,” Musk posted on X.

Chevron didn’t specify why it’s moving its headquarters to Houston.

However, the company has faced numerous lawsuits over environmental and public health issues linked to its operations.

Environmental activists have also criticized Chevron for its role in climate change.

Last September, California sued Chevron and four other major oil companies.

 The state claimed these companies had been misleading the public about the dangers of fossil fuels for a long time.

 They highlighted the significant harm caused by these companies, resulting in billions of dollars in damage to communities and the environment.

 At that time, a Chevron spokesperson said that climate change is a global issue needing a coordinated international policy response.

 They argued that piecemeal litigation benefits only lawyers and politicians. 

 Chevron noted that California has historically promoted oil and gas development and stated that its local courts shouldn’t play a role in shaping global energy policy.

About Chevron

Chevron Corporation is an American multinational energy corporation headquartered in San Ramon, California. 

It is one of the world’s largest oil companies and a direct descendant of Standard Oil. 

Chevron operates in over 180 countries, covering many parts of the energy industry like exploring, producing, refining, marketing, and transporting oil and gas.

The company is also investing in lower-carbon technologies, such as carbon capture and storage, to reduce the carbon intensity of its operations. 

Chevron aims to address the growing global demand for energy while working towards a more sustainable future.

Chevron and climate change

The oil giant has been actively involved in addressing climate change through various initiatives and commitments. 

below are some key points: 

Net Zero Aspiration:

Chevron has set a goal to achieve net zero emissions for its upstream Scope 1 and 2 emissions by 2050.

This includes emissions from its operations and the energy it purchases.

Carbon Intensity Targets:

The company has established targets to reduce the carbon intensity of its operations. 

By 2028, Chevron aims to reduce its portfolio carbon intensity to 71 grams of CO2 equivalent per megajoule (g CO2e/MJ).

Moreover, increase its upstream carbon intensity to 24 kilograms of CO2 equivalent per barrel of oil-equivalent (kg CO2e/boe).

Investments in Low-Carbon Technologies:

Chevron is investing significantly in low-carbon projects, with plans to allocate $2 billion by 2028 for carbon-reduction projects and $8 billion for low-carbon investments. 

This includes initiatives in renewable fuels, hydrogen, and carbon capture and storage.

Climate Change Resilience:

Chevron has published several climate change resilience reports detailing its strategies and progress. 

These reports outline the company’s approach to managing climate-related risks and opportunities, as well as its governance structure for overseeing climate-related issues.

Public and Legal Challenges:

Despite these efforts, Chevron has faced criticism and legal challenges regarding its role in climate change. 

Accusers claim the company downplayed the risks of climate change in the past, but the company denies this.

Chevron’s approach to climate change reflects a balance between continuing its traditional energy operations and investing in new technologies to reduce its carbon footprint.

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