Chevron Corp (NYSE: CVX) has announced plans to move its headquarters from California to Texas, a strategic relocation that aligns with the company’s response to the evolving political landscape. This move comes as Vice President Kamala Harris’ prospects in the upcoming November elections appear increasingly robust.
The decision to shift headquarters reflects broader political tensions. While former President Donald Trump is a staunch supporter of the oil industry, Kamala Harris has been associated with progressive policies that may challenge traditional oil and gas interests.
The presidential race is increasingly framed as a contest between pro-oil and tech-friendly agendas, underscoring the impact of Harris’ strong ties to Silicon Valley in California.
Texas is happy
The state of Texas, which votes mainly Republican, is welcoming the move. The governor Greg Abbott took to X to express his joy at the decision.
WELCOME HOME Chevron!
Texas is your true home.
Drill baby drill.
Chevron, in Snub to California, to Move Its Headquarters to Houston.https://t.co/KCMWoTKphY
— Greg Abbott (@GregAbbott_TX) August 2, 2024
The company’s CEO Mike Wirth and VC Mark Nelson will move to Texas well before the January 1st relocation date in order to ensure a smooth transition of the workforce. Around 2000 employees of the company are currently located in San Ramon, California.
This isn’t the only incident of a company moving out of Texas. Recently, big companies like Tesla, Oracle, Hewlett Packard Enterprises, and Elon Musk’s SpaceX have all moved out of California.
For Chevron, the reason is mainly last year’s lawsuit that was filed last year by an industry group over climate change. Chevron was one of five oil companies party to that lawsuit.
By moving out of the state, these companies can now improve their corporate decision making and have less to worry about when dealing with State authorities.
As companies change their locations, the cities that house them will likely benefit from any government support given to these companies.
However, the reason for moving out of the state could also be Kamala Harris’ increasing popularity in the presidential race.
Kamala Harris looking strong
This move by Chevron, and Texas governor’s ‘drill baby drill’ post also suggest there is political motive behind this move. Trump is obviously a friend of the big oil companies and he doesn’t hesitate to say it as it is.
Kamala Harris, on the contrary, has roots in California and also has good relationships with the Silicon Valley executives. The politically charged environment is making companies take extreme decisions, even though they would like to pretend they are apolitical.
Trump’s $1 billion ‘demand’ from oil companies to support his nomination will result in friendly policies for these companies if the money helps him come to power. With these policies, the oil companies can make many more billions, making themselves richer than before.
Chevron stock hasn’t had a special year so far with the price stuck in the $140-$160 range. The company announced its earnings today and reported $4.4 billion in profits for the quarter, down significantly from the $6 billion in the same period last year.
The earnings came in below expectations and the stock price is going down as a result.
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