Chevron takes its headquarters and heads to Texas

Speaking to his political rivals in Tennessee in 1836, ex Representative Davy Crockett famous he told them: “You can all go to hell, and I'll go to Texas.”

CEO of Chevron Mike Wirth he didn't exactly say it out loud to California Gov. Gavin Newsom and other state officials there this week, though he did approve the relocation of its office and the rest of the company's headquarters from its old location in Sant Ramon to a new location in Houston, Texas. And no one could blame Wirth if he'd had Crockett's strong words at the helm, given the state's Democrats' ongoing efforts to force California's once-mighty oil and gas industry out of its borders.

from Chevron history in California dates back to 1879 and the creation of the Pacific Oil and Gas Company. Pacific Oil and Gas was gobbled up in 1900 by the Standard Oil monopoly, which was soon forced to break up after antitrust reforms enacted under President Theodore Roosevelt. Chevron grew out of Standard Oil of California, one of the so-called spin-off companies of the “7 Sisters” created in 1911.

Since those early years, Chevron has grown steadily, both through the drill and through mergers with other oil giants such as Gulf Oil Company, Texaco, Unocal, Noble Energy and with last October's $53 billion acquisition of Houston-based Hess Corp.

In its launch, the company says the goal of the move is to “enable better collaboration and engagement with executives, employees and business partners.” This is a testament to the fact that Houston has long been considered the capital of the US domestic oil and gas industry, with many international players also maintaining a strong presence in the city for similar reasons. Chevron doesn't say so in the statement, but there's no question that going to Texas also makes more sense from a tax and regulatory standpoint.

Although its presence in California as a driller, producer, refiner and retailer of oil and related products has faded in recent decades, the Permian Basin of West Texas and southeastern New Mexico has become the centerpiece of Chevron's domestic land operations. Houston is also much closer to the company's large operations in the Gulf of Mexico and even the Bakken Shale assets in North Dakota that it is acquiring in its deal with Hess Corp.

And then there's the much friendlier tax and regulatory environment in Texas. Wirth recently said a an interview: “We believe that California has a number of policies that drive up costs, that hurt consumers, that discourage investment, and ultimately we think that's not good for California's economy and for consumers.” That's a polite way of saying it, to say the least.

The reality is that California politicians have enacted a flurry of laws, regulations and mandates over the past 30 years designed to force oil and gas companies out of their midst; The only wonder here is that Chevron managed to hold out this long before finally acceding to their wishes.

There's a lot to love about California and its people. It's a beautiful part of the world and I've never had anything but positive interactions with the people there in the many times I've visited the state.

But there's a real reason so many thousands of California residents and businesses have picked up and fled the state for Texas this century. You don't have to take my word for it; just ask Elon Musk.

Welcome to Texas, Mike Wirth and Chevron. Texas' state motto is “The Friendship State,” and you and your friends are about to find out why.

David Blackmon is a Texas-based energy writer and consultant. He spent 40 years in the oil and gas business, where he specialized in public policy and communications.

The views and opinions expressed in this commentary are those of the author and do not reflect the official position of the Daily Caller News Foundation.

Featured Image Credit: Flickr/Matt Turner

 All republished articles must include our logo, our reporter’s byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contact [email protected].

Latest messages from David Blackmon (see everything)

We have zero tolerance for comments that contain violence, racism, profanity, profanity, doxing, or rude behavior. If a comment is spam, instead of replying to it, click the ∨ icon below and to the right of that comment. Thank you for engaging with us in a fruitful conversation.