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‘A Tough Place To Do Business’: Chevron Exec Details Company’s Decision To Move HQ Out Of California

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From the Daily Caller News Foundation

By Nick Pope

 

A top Chevron executive detailed his company’s decision to move its headquarters out of California in a Thursday roundtable with reporters.

Andy Walz, president of Chevron Americas products, said that California’s crusade against conventional energy producers played a role in the company’s decision to move its headquarters to Texas. Measures like California’s 2035 ban on internal combustion engine vehicles and its emissions cap-and-trade rules were specific headwinds that played a role in the company’s decision to move its headquarters to Houston, Walz said.

“It is a difficult place to do business. It’s a difficult place to be headquartered. And we finally said, ‘Hey, that’s enough. We’ve got critical mass, we’re gonna move.’ We’re also going to improve our performance by getting everybody in the same location,” Walz explained.

Walz made clear that part of the reason for Chevron’s headquarters relocation is that parts of its operations and senior leadership have already been stationed in Texas, and that the company believes its performance can improve if employees and executives are in the same place. The company is not walking away from its assets in California, andChevron plans to continue operating them into the future, Walz said.

“California is a tough place to do business. It’s a tough place to recruit people. It’s a tough place to move employees. A lot of our employees move up through the company, they gain experiences in different geographies, different locations, and we have a lot of people that will not move to California. That makes it difficult,” Walz said. “California is a tough place to have a big employee base. It’s tough, its cost of living is expensive, and we were not able to get employees that didn’t live there to move there. And that’s not sustainable for us, to be honest.”

California has the third-highest cost of living of all states, trailing only Hawaii and Massachusetts, Forbes Magazine assessed in July. Overall, California has seen net outflows of population in recent years, with more than 800,000 people moving out of the state in 2022 alone, according to Forbes.

Additionally, more than 350 companies moved their headquarters out of the state between 2018 and 2022, according to Forbes.

“California has said, ‘Hey, you cannot buy a new car that has an internal combustion engine in it after 2035.’ So, that’s a headwind against investing in a refinery. On the books, they have a windfall profits tax or penalty, they’re evaluating how to deal with that, they want to cap the amount of profits you can make in your refinery. That is a headwind for anybody that would want to put money into it to try to get a return on their investment,” Walz said. “And the third thing that maybe is even a bit more crippling is this: they have a program called cap and trade, where they tax your CO2 emissions in the state of California. And that tax continues to go up every year, and it gets more burdensome every single year. So those three regulations, those three policies, really make it hard for me to want to put more capital into the state of California. Therefore, I think the business case there is really challenging.”

“Our competitors are looking at the exact same equation I’m looking at, and our money is going other places, and California can’t get supplied from Houston,” Walz said. “It doesn’t work.”

The Environmental Protection Agency’s (EPA) recently-finalized tailpipe emissions standards for light- and medium-duty vehicles — which have been characterized by critics as an “EV mandate” — are another policy that Walz believes will have “consequences” if implemented.

Walz’s comments on the business environment in California echo Chevron CEO Mike Wirth’s recent remarks to The Wall Street Journal, in which he said that “California has a number of policies that raise costs, that hurt consumers.”

As news of Chevron’s headquarters relocation broke earlier in August, the office of Democratic California Gov. Gavin Newsom told the Daily Caller News Foundation that the company’s decision was the “logical culmination of a long process that has repeatedly been foreshadowed by Chevron.”

conflict

The West Is Playing With Fire In Ukraine

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National Security Communications Adviser John Kirby

From the Daily Caller News Foundation 

By Morgan Murphy

As wars tend to do, the battle over Ukraine continues to escalate.

It was reported this week that North Korean soldiers in the conflict total 10,000 thus far and that Russia has rewarded Pyongyang by sending its excellent air defense systems to the Korean Peninsula in exchange.

Last month, the National Security Council spokesman, John Kirby, warned that any North Korean troops fighting in the conflict would be, “fair game and fair targets.”

His green light delivered this week when “a high-ranking North Korean military officer [became] a casualty” according to a Wall Street Journal story on Thursday. That strike was allegedly conducted with British Storm Shadow missiles.

Just these recent events further entangle the U.S., U.K., North Korea, South Korea, and China within the Russia-Ukraine conflict.

But the week’s biggest Ukraine news rattled many Americans — the Biden administration authorized Ukraine to strike targets within Russia with the American-made Army Tactical Missile System (ATACMS).

“The missiles will speak for themselves,” Ukrainian President Volodymyr Zelenskyy boasted.

They sure will. First of all, the U.S. doesn’t have many of the $1.3 million missiles to lob around. U.S. Indo-Pacific Command Commander Admiral Samuel Paparo warned an audience at the Brookings Institute this week that the conflicts in the Middle East and Ukraine are “now eating into stocks … and to say otherwise would be dishonest.”

I’ve met and been briefed by Admiral Paparo, who is one of the most positive and straight-talking flag officers in our military. If he is publicly ringing the warning bell, U.S. policy leaders should take heed.

Putin did not take the news of the ATACMS well. In response, he announced the use of a hypersonic ballistic missile on Thursday, carefully noting that it didn’t carry a nuclear warhead. The unspoken part: next time, it might.

What’s the goal in Biden’s escalation? It seems the White House is trying to prevent the inevitable or blame Trump for Ukraine’s upcoming defeat.

What they won’t admit is that the metrics of the war are not in Ukraine’s favor, and frankly never have been. No supersonic missile will change the immutable: Russia boasts a population five times Ukraine’s and when it comes to war materiel, Russia is winning. Despite Biden’s attempt to hobble the Russian economy, Putin’s war industry is outproducing the West by three times in the basic munitions needed to prosecute a land battle.

But aren’t Russians dying en mass on the battlefield?

Western leaders keep touting Russia’s high death toll, which estimates now place at 600,000. To military strategists here in the United States, such a human cost is unimaginable. Add up every American combat death going back 160 years through the Gulf Wars, Afghanistan, Vietnam, Korea, World War II, World War I, and even the Union combat deaths in the Civil War, and the number does’t reach what Russia has lost in the past 1,000 days.

American and NATO leaders are foolish to underestimate Russian resolve.

Since its initial blundering and poorly-executed invasion of Ukraine in 2022, Russia has recovered from its mistakes, Russian public support for the war remains high, and the Russian economy hasn’t fallen apart. Putin may have lost the virtue-signaling battle of Ukrainian flag lapel pins, but make no mistake: he’s on a path to win the war.

Biden’s deputy Pentagon press secretary, Sabrina Singh, says don’t worry. On Thursday she told reporters the administration was sending as much American weapons and support to Ukraine as it can muster, “in the weeks and months ahead left of this administration. So, that’s what we’re really focused on.”

What did she make of Putin’s nuclear threat?  “I mean, you know, we’ve seen this type of, you know, dangerous, reckless rhetoric before from President Putin,” Singh said.

“I mean, you know?” No, we don’t know. The world hasn’t seen nuclear threats like this since Harry S. Truman demanded Japan surrender.

For anyone worried about the state of our national security, January 20th can’t come quickly enough.

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Daily Caller

Chinese Agents Can Now Access Every American’s Phone Calls And Texts, GOP Senator Warns

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Republican South Dakota Sen. Mike Rounds warned Friday that China’s state-sponsored hackers, known as Salt Typhoon, have gained the capability to spy on millions of Americans through their mobile phones. (Screenshot/YouTube/HalifaxtheForum)

From the Daily Caller News Foundation 

By Mariane Angela

Republican South Dakota Sen. Mike Rounds warned Friday that China’s state-sponsored hackers, known as Salt Typhoon, have gained the capability to spy on millions of Americans through their mobile phones.

During an event at Halifax The Forum, Rounds revealed that hackers have infiltrated all major U.S. telecommunications firms. Rounds said these hackers have penetrated every major telecom provider in the country. He also said the Chinese Communist government is capable of reading texts and listening to conversations.

“Any one of us and every one of us today is subject to the review by the Chinese Communist government of any cell phone conversation you have with anyone in America. Because they have access to every single one of our major telecommunications companies. They have broken in. They can read your texts, and they can hear your conversations,” Rounds said. “It’s just a matter of who they want to listen to and who they don’t.”

Salt Typhoon, identified as a Chinese hacking group, has infiltrated the networks of AT&T, Verizon, and T-Mobile, and their presence lingers, according to Democratic Virginia Sen. Mark Warner, chair of the Senate Intelligence Committee, The Washington Post reported. Warner called the breach “the worst telecom hack in our nation’s history—by far.”

The breach, ongoing for over a year, affects telecom giants such as AT&T, Verizon, and T-Mobile. Hackers even accessed law enforcement wiretap request logs, revealing investigative targets, though the wiretap system itself remains uncompromised, WaPo said. The breach reportedly targeted communications involving former President Donald Trump, Vice President-elect JD Vance, and White House officials.

Despite intervention from the FBI, the hackers remain embedded in the U.S. telecom infrastructure, according to WaPo. Warner explained that expelling them will require a massive overhaul, including the physical replacement of thousands of routers and switches across affected networks.

“This is an ongoing effort by China to infiltrate telecom systems around the world, to exfiltrate huge amounts of data,” Warner said.

The group exploited outdated infrastructure and inter-network trust, enabling real-time eavesdropping and data exfiltration, the outlet reported. While fewer than 150 individuals were directly targeted, the scope of compromised data extends to millions of associated contacts.

The Biden administration urges stricter cybersecurity measures to counter persistent Chinese aggression.

“We must lock our digital doors,” Deputy National Security Adviser Anne Neuberger said.

National security officials, including Trump appointees, vow heightened focus on combating cyber threats.

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