SAN RAMON, Calif. (KGO) — Chevron, one of the Bay Area’s largest companies, announced Friday morning it is moving its headquarters from San Ramon to Houston, Texas.
The company says that there won’t be much immediate relocation and expects all corporate functions to migrate to Houston over the next five years.
Positions for its California operations will remain in San Ramon.
Chevron currently has about 2,000 employees in San Ramon and 7,000 employees in the Houston area.
The company also announced several leadership changes Friday morning.
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Contra Costa County Supervisor John Gioia told ABC7 News that this move was expected.
“I don’t think this was really surprising,” Supervisor Gioia said. “Chevron had really telegraphed this over the last few years by shifting many of its corporate jobs from California to Texas.”
He says Chevron’s move falls in line with California’s push for more clean energy.
“Texas is on a very different pathway than California,” Supervisor Gioia said. “Texas is the heart of the oil industry. California has made it very clear in our policies that we want to move toward a zero emission fossil free future.”
However, not everyone thinks this move is a good thing.
The Bay Area Council says losing a company like Chevron hurts the local economy.
“It’s disarming to see such a major company and a mainstay of the Bay Area and California business community and economy leave out state,” Bay Area Council CEO Jim Wunderman said.
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Wunderman says the state should consider policies that don’t drive companies to other states.
“State leadership needs to take notice of this and acknowledge it and ask the hard question why do companies feel they are better off in texas or some other state and not in California,” Wunderman said. “If we are such a powerful economy why don’t companies want to be here.”
Governor Gavin Newsom’s Office said in a statement:
“This announcement is the logical culmination of a long process that has repeatedly been foreshadowed by Chevron. We’re proud of California’s place as the leading creator of clean energy jobs.”
A Chevron refinery spokesman says the corporate move from San Ramon to Texas will have “no impact” on their Richmond, California refinery.
The Chevron refinery in Richmond will stay in place and have “no impact” from the move, a spokesperson says. Supervisor Gioia says as long as it’s there, Chevron will still be paying plenty of property tax.
“They are the largest property tax payer in contra costa but that is based on the value of their refinery,” Supervisor Gioia said. “This move to texas does not change the valuation of the refinery.”
There is uncertainty surrounding the office in San Ramon. Chevron did not say if they plan to close the office entirely. If they do, Supervisor Gioia says it’s a good space for a new company to move in.
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