Major oil company, Chevron, has joined the increasing number of businesses relocating from California to Texas. Major corporations like Tesla, Charles Schwab, and Oracle have already made the move.
The exodus from California to Texas is accelerating. Chevron, a fixture in California since its founding as the Pacific Coast Oil Company in 1879, is the latest to follow this trend. Last year, California sued Chevron, alleging the company and other energy giants downplayed the dangers of fossil fuels.
New employment laws in California are also complicating office operations. A recent law restricts employers from contacting employees after work hours, imposing a $100 penalty for violations.
At the 2023 World Economic Forum in Davos, climate activists protested, accusing major oil companies of dominating the climate change conversation.
In contrast, Texas welcomes these companies. Governor Greg Abbott tweeted on Friday, "WELCOME HOME Chevron! Texas is your true home." He confirmed Texas's supportive stance with, "Drill baby drill."
This trend of corporate relocations is significant, with eight Fortune 500 companies leaving California between 2018 and 2023, according to real estate giant CBRE. Ten companies, including CBRE itself, have moved to Texas, with CBRE relocating its headquarters from Los Angeles to Dallas in 2020.
Despite being the birthplace of Silicon Valley and home to tech giants like Apple, Alphabet, Meta, and Nvidia, California faces growing competition.
The state previously boasted 55 Fortune 500 companies, but that number is now 54 after Chevron, formerly ranked 15, relocated its headquarters to Texas. This departure highlights the growing trend of companies moving to the Lone Star State.
Chevron's Exodus: California To Texas
Energy giant Chevron has relocated its headquarters from San Ramon, California, to Houston, Texas. In a new blog post, the company said it plans to complete the move before the end of 2024.
The energy company said the relocation will enhance collaboration among senior leadership and "enable better collaboration and engagement with executives, employees, and business partners."
This move will consolidate its workforce, as Chevron already employs approximately 7,000 people in Houston compared to 2,000 in San Ramon.
Why Companies Are Fleeing The Golden State
A recent survey by RedBalloon and PublicSq. 's Freedom Economy Index reveals growing concerns among California business owners. Over 86 percent reported increased crime within their area, while 67 percent contemplated relocating their headquarters out of the state.
California represents 10 percent of the 80,000 business owners surveyed nationally, as reported by RedBalloon CEO Andrew Crapuchettes. "Employers we've been talking to have been planning a move or thinking about a move since 2020," Crapuchettes told Digital (via Fox Business).
"And what's happening is, in the last couple of years, every time Gavin Newsom does a new stupid thing, it makes it a lot easier for them to make that decision."
"[It's a] headache," the CEO continued. "They are dealing with regulation, they're dealing with taxes, they're dealing with crime... They're still generating economic activity, but this invisible groundswell of businesses [are] planning on leaving the state, and that's because of those bad policies."
The top reasons employers in the survey cited for leaving California include exorbitant business taxes, a hostile regulatory environment, a public school system focused on social issues over core academics, and a soaring crime rate that creates an unsafe business environment.
California's business climate needs reform. Without significant changes, the state risks losing even more businesses and jobs.
