Occidental Petroleum, LA's largest company leaving for Houston Texas

[pawprint2]

Occidental Petroleum has called Los Angeles home for nearly a century. On Friday the company revealed plans to spin off its California oil and gas assets into a separate publicly traded company, and move the rest of the company from its Westwood headquarters to Houston. Occidental is the largest publicly owned company in Los Angeles and the third biggest (by market capitalization) in the county, behind Walt Disney and Amgen, the LA Business Journal says. The move to Houston was not unexpected, but still stunning.
I believe I'm starting to see a trend here!! One of the oldest and The largest company in LA, leaving and taking all those jobs with them. It's hard to believe that one of the largest oil companies in the US would want to leave the workers paradise.....

 

[Bjm0918]

Good for them.

 

[SomeOtherGuy]

I'm more surprised that they were still in California at all.

 

[EddieNFL]

But, the weather is so great. Fools! After a couple of Texas summers they'll be grateful to pay higher taxes, deal with mega layers of bureaucracy and contend with liberal morons to to get back.

 

[sqidd]

More of this needs to happen. A lot more.

 

[Dirty D]

This trend is not new, companies have been leaving the PRK for years, Lockheed Martin moved a substantial part of their operation from SoCal to Oklahoma City several years ago. Toyota bailed for Texas and the list goes on and on. Sooner or later (probably much later) the voters will choose jobs over entitlements and the pendulum will swing.

 

[Mike_Honcho]

I believe I'm starting to see a trend here!! One of the oldest and The largest company in LA, leaving and taking all those jobs with them. It's hard to believe that one of the largest oil companies in the US would want to leave the workers paradise.....

I think if your an energy company of significance there are only a handful of communities for you to site in. That said, for corporations in general CA ranks 48th in the nation as far as overall taxation. This does not even begin to address all of the other externalities that come with CA. Texas on the other hand ranks #11 and they have boat loads of econ development incentives for incoming corporations.

2014 State Business Tax Climate Index | Tax Foundation


Right this second I am sitting on my couch researching the comparative costs to do business in TX vs OR as I am trying to land a deal that would bring @ 500 well paying jobs to my community. TX is very competitive and if you look where the job growth has been greatest - TX has run away with it. Hmmm….I wonder if there is a connection to most recent effort to discredit the TX Gov? Nah…..

 

[Hairball]

Here we go again, the company is not moving, just the headquarters. Why, so that the CEO's can make even more money with less taxes and the incentive programs that Texas offers only gives the company CEO's and shareholders more money without having to give anything back to the state of Texas. The main operations will still be here in CA under a new name.

"This new company will be the largest oil and gas mineral acreage holder in the state with approximately 2.3 million net acres, and will have major operations in the state’s high-potential oil and gas basins, including Los Angeles, San Joaquin, Ventura and Sacramento,” the Occidental statement said.

The only thing they are doing is finding a way to increase their profits while decreasing the amount of taxes they should be paying. The rich continue to get richer and all Texas has done is provide them with the means of doing so without receiving any real benefit from it.

 

[Mike_Honcho]

Hairball - OXY is moving and forming a NEW entity for the business units that they are leaving in CA. It says so in the article.

From what I can tell they have not filed a WARN notification yet and the articles seem to indicate that this restructuring will not be complete until 2015.

 

[EddieNFL]

The rich continue to get richer and all Texas has done is provide them with the means of doing so without receiving any real benefit from it.

Texans should refuse to work for them. That'll show 'em.

 

[ArmyJerry]

I ve been involved in the oil business for 26years , California, the North East and Illinois are the absolute hardest places I have done business outside of Haiti. California sits on a huge ocean of oil , onshore and offshore, I hope they all starve to death soon so the USA can come in and get it. Its a dam shame.

 

[catswithguns]

Yes, being of substantial means should be a capital offense. Kill all those rich bastards.

 

[Sean the Nailer]

California.... the US's next 'Detroit'.

 

[Distinguished Rick]

But, the weather is so great. Fools! After a couple of Texas summers they'll be grateful to pay higher taxes, deal with mega layers of bureaucracy and contend with liberal morons to to get back.

I lived in Commiefornia in the 80's when I was stationed at MCAS El Toro. The only thing Commiefornia has going for it is weather, everything else sucks. Their guns laws are just about the worst in the country. They are trying their hardest to become the next nanny state behind New York. I wish more would leave but we don't need their tree hugging liberals.

 

[Sharpsman]

Read an article earlier in the year....think it was by Victor Davis Hanson...possibly Thomas Sowell and figures were given showing that any individual residing and working in California would pay 52% of their income to federal/state/municipal taxes for 2014! So the obvious question to me is....at what point do those citizens/residents of California feel like they can continue to take it up the 'guzoo' before they pull a Hank Snow aka carry their azzes??

 

[Michael]

As a former Orygun resident I was always struck by the border check points just to get into the state.
Felt a bit like travel in the eastern block.........comrade.

 

[proneshooter]

Here we go again, the company is not moving, just the headquarters. Why, so that the CEO's can make even more money with less taxes and the incentive programs that Texas offers only gives the company CEO's and shareholders more money without having to give anything back to the state of Texas. The main operations will still be here in CA under a new name.

"This new company will be the largest oil and gas mineral acreage holder in the state with approximately 2.3 million net acres, and will have major operations in the state’s high-potential oil and gas basins, including Los Angeles, San Joaquin, Ventura and Sacramento,” the Occidental statement said.

The only thing they are doing is finding a way to increase their profits while decreasing the amount of taxes they should be paying. The rich continue to get richer and all Texas has done is provide them with the means of doing so without receiving any real benefit from it.

Bitter much? Don't hate the player, don't hate the game, hate your state that set the rules of the game.

 

[Hairball]

Not bitter at all. Just highlighting a problem that occurs all over the nation. I read today that Burger King is moving its headquarters from Florida into Canada to reduce tax debt. All of these companies take advantage of the loop holes they create in a system they control and then hire cheap labor all for the top CEO's to make even more money while us "tax payers" are left footing the bill to cover these "incentives" for corporations to move to areas that give them excessive tax favors. I am a business owner and right now we are in the process of a class action suit against credit card companies that issue "rewards" programs. If you go into a store and use a credit card with let's say 3% cash back. Why should I as a business owner have to pay that bill. The CC company can make and rewards program they want because they don't pay the reward, the business you shop at does. It actually costs us more than the 3% because we also have to pay the fees for the service who collects the money for the CC company who takes their cut then passes the rest back to the bank.

 

[pawprint2]

Not bitter at all. Just highlighting a problem that occurs all over the nation. I read today that Burger King is moving its headquarters from Florida into Canada to reduce tax debt. All of these companies take advantage of the loop holes they create in a system they control and then hire cheap labor all for the top CEO's to make even more money while us "tax payers" are left footing the bill to cover these "incentives" for corporations to move to areas that give them excessive tax favors. I am a business owner and right now we are in the process of a class action suit against credit card companies that issue "rewards" programs. If you go into a store and use a credit card with let's say 3% cash back. Why should I as a business owner have to pay that bill. The CC company can make and rewards program they want because they don't pay the reward, the business you shop at does. It actually costs us more than the 3% because we also have to pay the fees for the service who collects the money for the CC company who takes their cut then passes the rest back to the bank.

Federal law mandates that CEO/company officers diligently operate the company to maximize profits for the share holders, to include tax avoidance within the law. To Blame BK for following the law is ridiculous, what would make far more sense is to blame those that make high taxes, thus giving the BK board something to avoid in the first place. BK is not a charity, but rather a for profit company, all those that own stock in BK expect a return on their money, and would question the leadership (and perhaps bring charges if warranted) if they BK corporate leadership paid far more in taxes than was necessary. So much money from former "American" corporations is now overseas, because we've raised out Corporate taxes far higher than other countries. Just like in the shit-hole CA, they keep raising the tax rates, and can't understand why tax payers/ tax paying corporation keep moving! Their answer has been, raise those taxes a little more to make up for the short fall! Non-commies realize the answer is to be competitive, the first place to start would be with tax rates and stupid ass regulations. It is working for Canada right now. When ideology (wealth redistribution) trumps common sense (reality) you get these types of moves.

 

[hunterb]

Federal law mandates that CEO/company officers diligently operate the company to maximize profits for the share holders, to include tax avoidance within the law. To Blame BK for following the law is ridiculous, what would make far more sense is to blame those that make high taxes, thus giving the BK board something to avoid in the first place. BK is not a charity, but rather a for profit company, all those that own stock in BK expect a return on their money, and would question the leadership (and perhaps bring charges if warranted) if they BK corporate leadership paid far more in taxes than was necessary. So much money from former "American" corporations is now overseas, because we've raised out Corporate taxes far higher than other countries. Just like in the shit-hole CA, they keep raising the tax rates, and can't understand why tax payers/ tax paying corporation keep moving! Their answer has been, raise those taxes a little more to make up for the short fall! Non-commies realize the answer is to be competitive, the first place to start would be with tax rates and stupid ass regulations. It is working for Canada right now. When ideology (wealth redistribution) trumps common sense (reality) you get these types of moves.

Wow I hate to agree with pawprint2, but he's right. In an international business community, you have to stay competitive. Taxing corporations until they are forced to leave is beyond stupid.

The liberal mindset of "tax more" instead of "cut wasteful spending" for the past 30 years has led basically to a bankrupt California, despite being like the 11th largest economy in the world, the State is bankrupt.....talk about gross mismanagement...

 

[Mike_Honcho]

Not bitter at all. Just highlighting a problem that occurs all over the nation. I read today that Burger King is moving its headquarters from Florida into Canada to reduce tax debt. All of these companies take advantage of the loop holes they create in a system they control and then hire cheap labor all for the top CEO's to make even more money while us "tax payers" are left footing the bill to cover these "incentives" for corporations to move to areas that give them excessive tax favors. I am a business owner and right now we are in the process of a class action suit against credit card companies that issue "rewards" programs. If you go into a store and use a credit card with let's say 3% cash back. Why should I as a business owner have to pay that bill. The CC company can make and rewards program they want because they don't pay the reward, the business you shop at does. It actually costs us more than the 3% because we also have to pay the fees for the service who collects the money for the CC company who takes their cut then passes the rest back to the bank.

A) The 'taxpayer' in the story is also a voter. In this case the voter (as a block) chose to allow state gov to grow and do business in a non competitive manner. The voter got what they (as a block) wanted.

B) Class action suit? Wow there are some slimy clown_slurs out there - how about this - don't like the cc policy, stop accepting the card. Instead suing (something negative) why not become part of a merchant's group and dictate to the card company a change in policy? esp since even if you 'win' the victory is hollow. That cost just gets recycled (paid) through other factions of the banking system.

Ahhh to be a banker….hey kid watch my left hand (right hand smacks the kid in the head)….no, no, watch my right hand (left hand smacks the kid in the head)….no, no, watch both hands (headbutt)….

 

[proneshooter]

Banker hate threads are always fun

 

[MosesTheTank]

There is a tide in the affairs of men
Which, taken at the flood, leads on to fortune
The better part of valor is discretion.
Tis a lucky day, boy, and we'll do good deeds on it
- William Shakespeare

Occidental (OXY) cares about politics only as far as it affects the next 10K or 10Q. That is what they are paid to do to, and have a significant legal mandate to do so. The penalties for neglecting this responsibility are both several and severe. In this pursuit the various executive committees are highly financial rational. Such executives are not paid to look out for the common good, or the interests or their soon to be former (and very unhappy) Los Angeles landlords. We read about Shareholder lawsuits, not Stakeholder lawsuits. OXY is obligated to it's bond holders and has no such contract with beneficiaries of the innumerable taxes paid by it and it's employees to the State of California and it's various municipalities and businesses (ad-valorem, sales, property, income...).

OXY has positioned itself to take advantage of the Permian Basin while shedding high risk investments (Middle East/North Africa), lower performing (mid-continent), and non-core (midstream) assets. OXY seems to be reducing debt and mitigating political risk. California, and Californians, have created a political climate that has had the effect of a net emigration of businesses away from the state. It is purely the reality of politics that has proven adverse to the bottom line. We shouldn't read any more into it than that.

Sweet are the uses of adversity
Which, like the toad, ugly and venomous,
Wears yet a precious jewel in his head;
And this our life, exempt from public haunt,
Finds tongues in trees, books in the running brooks,
Sermons in stones, and good in everything.
- The 17th Earl of Oxford (for argument's sake)

 

[Coomie]

Just to help set a few things straight (I happen to work for Oxy, although soon I will be working for CRC)...

1. This is a spinoff, hardly any real jobs are moving from one state or another (basically just the CEO and other big execs). However, the new company, California Resources, will have it's own CEO/CFO/board... So really no state gains any new jobs.
2. The new company, California Resources Corporation, will be completely independent of Oxy.
3. This wasn't done for tax purposes, it was done so that each company has more potential for growth (smaller companies can grow faster %-wise... At least in oil).
4. I'm a Texan myself so being out here in California is different but it's probably not as bad as all of y'all may have heard. I actually enjoy it, outdoor shooting range when it's 70 degrees and sunny all day shooting into the side of a mountain... Hard to beat.


Sent from my iPhone using Tapatalk

 

[netranger6]

Texans should refuse to work for them. That'll show 'em.

Fuck that. Come on down, I work oil/gas industry and could always use more options!!