Chevron Corporation announced that it would relocate its headquarters from San Ramon, CA to Houston, TX by 2025 as they faced backlash from California state regulators and politicians due to environmental concerns. This is bound to have a major impact on the city’s economy and the community.
A large reason for Chevron Corporation’s departure is the declining oil activity in California. According to the SF Chronicle, oil production has decreased over 75% throughout the past few decades because of environmental regulations on drilling.
Last year, California sued many oil giants, including Exxon, Shell, ConocoPhillips, BP and the Chevron Corporation, accusing them of deceiving the public and lying to them about climate change and the risks of fossil fuels. California Representative Mark DeSaulnier also expressed how he was disappointed but not surprised that Chevron was leaving, stating that efforts towards clean energy have not been successful. According to Bloomberg, Chevron CEO Mike Wirth pushed back against the lawsuit, claiming that the suit would only benefit lawyers and politicians, not the environment. Wirth also explained that the company’s and the state’s priorities differ on energy policy, which is why they will be departing the state.
San Ramon Mayor Dave Hudson has been mayor for the past four years; he believes that the leave will not lead to an improved climate, saying,“I don’t think the environmental impacts will change because the oil refineries are still located in California, it’s only the headquarters that are moving.”
Furthermore, Mayor Hudson talked about the immediate and long-term impacts of Chevron leaving, observing that,“The impacts, both long-term and short-term, would be people having to leave the city in order to keep their job at Chevron. They wouldn’t participate in the community anymore, nor would they buy products from our city.”
There is great diversity in San Ramon now compared to when Chevron first came to San Ramon. The area is evolving, with schools, robust communities, the City Center and professionals. Remote work has also brought more people into the city, creating a booming business climate and economic activity.
However, the departure may cause issues for San Ramon, impacting the housing market or causing community events or businesses to lose out on money, as they have been donating to the city for the past few decades. There have been numerous budget cuts in the city and this has caused trouble for people working for the city.
Mayor Hudson, commenting on potentially new problems arising from Chevron’s leave regarding budget and job cuts, said,
Moreover, Chevron is a major sponsor for Run for Education, the primary fundraising event in the San Ramon Valley for education. Run for Education has been a crucial tradition in the San Ramon Valley from the past 41 years, helping fund innovative programs across SRVUSD.
Run for Education’s Executive Director, Vanessa Berastain, expressed her gratitude towards Chevron’s contribution to the event, “The San Ramon Valley Education Foundation has worked closely with Chevron for many years, developing strong relationships with the organization and its employees. The Foundation has collaborated with Chevron on the Run for Education as well as other SRVEF programs and events. Chevron is a long-standing supporter, not just as a sponsor. Our relationship has been built on shared values of education, community support and fostering a healthy and engaged community. We don’t yet know how things will play out while Chevron gradually reduces its presence in San Ramon.”
Similarly, Chevron has also been a sponsor for various other large community events and reportedly plans to stay involved with San Ramon. The City of San Ramon posted a press release on the topic, pointing out that Chevron has been a sponsor for community events such as the Art & Wind Festival or the Summer Concert series for decades and that they are expecting continued involvement as their office presence remains in San Ramon
However, the Mayor was wary regarding some of these community events and their funds, remarking, “Because of the lack of funding, many of these programs will have to go through budget cuts, job cuts or they will have to find new sponsors, which would be a great struggle.” Commenting on a specific activity, Mayor Hudson recollected, “One program I know is ending permanently is the annual Christmas light show event at Chevron headquarters. Everyone in the city enjoyed this event and it was a place for families to celebrate during the holidays and that won’t be happening anymore.”
