|Oil wells in Huntington Beach, 1935|
Putting Jobs in a Museum
- Thank you Jerry Brown, on your watch Occidental Petroleum is moving their California headquarters, and all those jobs, to business friendly Texas.
- Occidental joins Fluor Corp, an engineering company now based outside Dallas. Fluor had called California's Orange County home until 2006. Calpine Corp, now a Houston-based power company, abandoned San Jose three years later.
(Reuters News) - Occidental Petroleum Corp said it would spin off its oil and gas assets in California into a separately traded company and move its headquarters from Los Angeles to Houston, where it will be closer to its largest U.S. operations.
Wall Street analysts have estimated the underperforming California unit, which Occidental had talked about splitting from for months, could be worth $19 billion to $22 billion.
|Good-Bye California. Hello Texas.|
Occidental said the California unit generated a pretax profit of about $1.5 billion in 2013.
The California unit, the largest natural gas producer in the state, has long been seen as a drag on the company because of its limited oil production. The California fields produced an average 261 million cubic feet of gas and 88,000 barrels of oil per day in 2013.
Occidental is increasingly focusing on production from fields in the Permian Basis in Texas and New Mexico, far from Los Angeles where the company was founded nearly a century ago.
California vs Texas
The formal migration of Occidental to Texas, a move Reuters flagged as likely late last year, follows several other departures from California to the Lone Star state by big companies in the energy industry.
Texas Governor Rick Perry welcomed the shift, saying it was only fitting that the state's biggest oil producer should be based in "the energy capital of the world."
Perry, a Republican, has run television ads in states that are traditional Democratic strongholds to lure companies to Texas, pitching it as a low-tax, low-regulation environment for "creative renegades."
Fluor Corp, an engineering company now based outside Dallas, had called California's Orange County home until 2006. Calpine Corp, now a Houston-based power company, abandoned San Jose three years later.
After Occidental's move, Chevron Corp. will be the only big oil company with headquarters in California.
|GOP Governor Rick Perry Welcomes Occidental |
Petroleum and Their Jobs to Texas.
The Olden Days
- Photos from back in the olden times. Way back then California drilled for oil and created high paying jobs in the energy industry.
- Today the only "growth" industry is in food stamps and welfare.
|Oil derrick in the middle of a Beverly Hills Road, 1940|
|Playa del Rey beach|
|Southern California's first actively-exploited oil field near the |
present-day neighborhood of Echo Park. Photo c. 1895-1901
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