Last summer, Chevron California informed that it would move its head office to Texas, but the Fallout has potentially worse implications for the 27 million drivers of the Golden State.
The oil giant, who has been located in California for more than 140 years, revealed in August that it would move its head office
However, Chevron reportedly weighs on stops with all production in the state, the Wall Street Journal reported.
If Chevron goes through, this could close two of the largest oil refineries in California – possibly stimulate gas prices even higher as it reduces delivery there.
The Golden State already consistently has higher gas prices than any state except Hawaii.
The company's decision will depend on whether California introduces a further environmental or other regulations, Andy Walz of Chevron told the Journal.
California has strict rules for fuel quality that have been imposed to limit harmful emissions and to curb environmental damage.
According to analysts of the oil industry, such regulations make it more expensive to produce oil in California compared to other states.
Chevron has two of the largest oil refineries in California
'Why deal with California if you could go to Texas or New Mexico? You only have so much capital and so much time in the day, “Andy Lipow, president of Lipow Oil Associates in Houston, told the Journal.
“Given the regulatory environment in California, I would invest outside the state.”
The last bill that is proposed about this was introduced on January 27 by the Democratic Senator Scott Wiener.
If the law is passed, insurance companies and homeowners would enable oil and gas companies to be liable for climate-related disasters such as forest fires.
California still recovers from the deadly forest fires that have destroyed large parts of Los Angeles.
The state is also in the grip of an insurance crisis, because large insurers refuse to issue new policies or to extend others who run an increased risk due to the rise of climate -related disasters.
Chevron refineries are good for a third of the State petrol production capacity.
The fuel-forming plants are a century old and include nearly 4,000 hectares in North and South California.
Governor Gavin Newsom's relationship with Chevron Sentrid about environmental regulations
The Golden State already has a consistently higher gas prices than any state except Hawaii
Sales of the facilities can be difficult to be difficult in view of the rising environmental obligations and a shrinking pool of buyers, according to the journal.
“We used to have competitors. They are gone, 'Walz, who runs Chevron's refining, pipeline and chemical companies, the publication told.
The demand for gasoline also shrinks, since 2019 with 10 percent in California, as more residents work from home and EV sales.
The state has a ban on the sale of cars with gasoline after 2035 and EVs now represent more than a quarter of the new car sales in California.
In 1983, California had 40 operational refineries, but the number has fallen to only 14 from last year, according to the Energy Information Administration.
The mitigating question has led to less oil exploration in the state, which in 2023 imported more than 75 percent of its oil.
Chevron is not the only company that leaves California, it follows the SpaceX, Oracle and Hewlett Packard from Elon Musk who have all moved to Texas.
