Treasury Secretary Bessent Highlights Texas Energy Output and Corporate Moves from California at Houston Event

Treasury Secretary Scott Bessent spoke at the Petroleum Club of Houston on Friday and described what he called a "tale of two states" between Texas and California. "In California, I saw firsthand what years of failed governance looks like: a tax system that is hostile to ambition. A regulatory state that smothers enterprise.

An economic climate indifferent to consequence," Bessent said in remarks shared with Fox News Digital. "Here in Texas, meanwhile, the contrast is so striking that it begins to feel like a tale of two states," he added. Bessent tied the differences to energy production.

"The AI race may be accelerated by the elegance of our code, but it will be won by the abundance of our energy," he said. "More than strengthening an economy, energy abundance also secures a nation. " He said Texas leads in several energy categories.

The state recently surpassed California in utility-scale solar capacity and reached record levels for crude oil production and low-carbon electricity generation. "Texas has become America’s center of gravity because it is fostering the conditions for families and businesses to flourish," Bessent said.

Several large companies have moved their headquarters from California to Texas in recent years, including Chevron, Tesla, Charles Schwab, and Hewlett Packard Enterprise.

A CBRE report found that of 725 companies that relocated headquarters between 2018 and 2025, 230 moved to Houston, Dallas, or Austin. IRS migration data showed Texas recorded a net increase of 56,000 tax filers between 2022 and 2023.