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Chevron (NYSE: CVX) shares turned negative this year, missing Wall Street expectations, after the company reported second-quarter earnings fell 26% last year to $4.43B, largely blaming weak refinery profits and refinery maintenance at a time when profits were higher.
CEO Mike Wirth says he remains optimistic about Chevron’s (CVX) attempt to acquire Hess for $53B despite disputes with Exxon Mobil over Hess’ 30% stake in a joint operating agreement for Guyana’s offshore energy fields Arbitration hearings will not be held in the near future.
But what may be drawing the most attention is Chevron’s (CVX) decision to move its headquarters to Houston from California, its home base of more than 140 years, after California’s climate regulations caused problems for the company.
“We believe many of California’s policies will raise costs, harm consumers, discourage investment, and ultimately we believe they are bad for the California economy and bad for consumers,” Voss said. wall street journal in an interview.
Just last year, California Attorney General Rob Bonta sued Chevron (CVX) and other oil majors, saying the companies misled the public about their role in climate change.
Chevron (CVX) said in January it would write down up to $4 billion of assets, mostly in California, citing regulatory challenges while also warning of the state’s “profit penalties” aimed at limiting refinery profits. Prevent suspected price gouging.
Gov. Gavin Newsom signed a bill this year giving the California Energy Commission oversight authority over oil companies to identify potential price gouging and impose penalties accordingly.
California’s oil production has dropped by more than half over the past decade and multiple refineries have closed; as a result, gasoline prices in the state have surged $1.16 per gallon above the national average.
“California regulators want to take over an industry in the name of mitigating the costs of their damaging policies. No wonder Chevron is running for its life.” wall street journal said in an editorial.
