Remember that Chevron was once Standard Oil of California. The attached WSJ article discusses the ugly divorce after all these years.
Chevron tired of California’s attempts to dictate corporate strategy. Per Chevron CEO Mike Wirth:
“Putting bureaucrats in charge of centrally planning key segments of the economy hasn’t worked in other socialist states,” Wirth said in a Nov. 1 call with investors. “I doubt it will be any different in California.”
California wanted Chevron to commit to the State’s energy agenda:
“Chevron has a future in clean energy in California. They can join us in our steady, long-term transition to a state powered by clean energy,” said Daniel Villaseñor, a spokesman for the governor’s office.
California wanted the interests of shareholders to be subordinate to the State’s carbon goals:
Newsom said Wirth had invested far more in shareholder payouts than in developing low-carbon energy.
Other State actions that contributed to the divorce:
- accused Chevron and other companies of price gouging
- accused Chevron, as a fossil fuel producer, of indirectly causing tragic fires
- banning the sale of gasoline-powered cars by 2035
- rules that increased gasoline prices
- lawsuit alleging climate change deception
Not mentioned in the article are the costly challenges Chevron and others are experiencing in decommissioning offshore platforms.
Bud's Offshore Energy (BOE) 