Chevron will be moving its moving its headquarters to Texas from California after nearly 150 years – but claims it’s not political.
The petroleum company announced Friday it would be following Elon Musk’s Space X to the South after is had dismal second-quarter earnings.
The new headquarters will be based in Houston, Texas.
‘Houston is the epicenter of our industry,’ CEO Mike Wirth told CNBC Squawk Box. ‘We’ve had our headquarters gradually growing in Texas and gradually pulling down in California. This is a continuation of a trend that has been underway for some time.’
For the past nearly 150 years, Chevron is currently based in San Ramon, California, where it was established in 1879.
The move comes after it announced its second-quarter earnings on Friday. Chevron shares fell more than one percent during morning trading, according to CNBC.
Chevron claimed the move was not political, however, the company has long criticized the blue state’s leadership for its stance on the oil industry, the Financial Times reported.
California has sued Chevron and other oil companies under accusations that they were misleading customers about the dangers of climate change – a hot-button ticket on the liberal ticket.
The state has also accused oil companies of price gouging and has tried to force penalties on their profit, according to KTLA.
All corporate functions will transition to Houston within the next five years, according to the outlet, while some positions will remain in San Ramon.
The company already has around 7,000 customers in Houston and around 2,000 in San Ramon, according to KTLA.
The company worked in crude oil fields, technical facilities, and has two refineries. It also has more than 1,800 retail stations in California.