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Chevron (NYSE: CVXThe company’s shares turned negative for the year after the company reported second-quarter earnings that fell 26% year-over-year to $4.43 billion, missing Wall Street expectations, largely blaming weaker refining margins and refinery maintenance at a time when margins were stronger.
Chevron CEO Mike Wirth said he remains optimistic about Chevron’s (CVX) $53 billion bid to buy Hess, even as arbitration hearings in the dispute with Exxon over Hess’s 30% stake in a joint operating agreement for offshore energy fields in Guyana have not taken place for nearly a year.
But perhaps the decision that caused the most buzz was Chevron’s (CVX) decision to move its headquarters to Houston from California, where it had been headquartered for more than 140 years, after the state’s climate regulations caused problems for the company.
“We think California has a number of policies that raise costs, that hurt consumers, that discourage investment, and ultimately we think that’s not good for the California economy and for consumers,” Wirth said. Wall Street Journal in interview.
Last year, California Attorney General Rob Bonta filed a lawsuit against Chevron (CVX) and other major oil companies, alleging that the companies misled the public about their role in climate change.
Chevron (CVX) said in January it would write down up to $4 billion in assets, mostly in California, citing regulatory challenges while also warning of the state’s “margin penalty,” which seeks to limit profits from refineries to prevent alleged price manipulation.
California Governor Gavin Newsom signed a bill this year that gives the California Energy Commission the power to monitor oil companies to determine whether they are likely to raise prices and impose corresponding penalties.
California’s oil production has fallen by more than half over the past decade and many refineries have closed; as a result, gasoline prices in the state are $1.16 a gallon above the national average.
“California regulators want to seize control of an industry in the name of mitigating the costs of their destructive policies. No wonder Chevron is running for its life.” The Wall Street Journal He said in Editorial.