The reorganization would result in three business lines: Exxon Mobil Upstream, Exxon Mobil Product Solutions and Exxon Mobil Low Carbon Solutions — all headquartered in the Houston area. 

“We greatly value our long history in Irving and appreciate the strong ties we have developed in the North Texas community,” CEO Darren Woods said in a statement. “Closer collaboration and the new streamlined business model will enable the company to grow shareholder value and position Exxon Mobil for success through the energy transition.”

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The arrival here of Exxon's top brass and some 400 workers from Irving will bolster Houston’s standing as the nation's “energy capital,” as the city recovers from the worst oil bust in a generation. The move will also have wide-reaching implications for the city’s economic development plans and real estate market as the Dallas-area employees, contractors and suppliers move south.

Exxon becomes the 25th Fortune 500 company to call Houston home. It's relocation marks the third Fortune 500 headquarters relocation to the Houston area in as many years. HP relocated to Houston from San Jose in 2020 and NRG Energy relocated from Princeton, N.J., in 2021. Houston ranks No. 3 with the most Fortune 500 companies, only eclipsed by New York City and Chicago.

“Exxon Mobil’s move further solidifies Houston’s position as the Energy Capital of the World,” said Bob Harvey, CEO of the Greater Houston Partnership, the city's economic development group. “Exxon Mobil is a key participant in our Houston Energy Transition Initiative, and we look forward to working with the company as we continue to position Houston to lead the energy transition to a low-carbon future.” 

Houston is familiar with Exxon’s economic juggernaut, known as the “Exxon Effect.” When Exxon announced plans to build its 385-acre campus in Spring in 2011, the project attracted thousands of new residents -- including from Exxon's Virginia offices -- to northern Harris County and southern Montgomery County, fueling the development of new master-planned communities, offices, hotels, apartments and stores in the region. It even helped propel construction of the Grand Parkway's northern section.

The global pandemic, however, dealt Exxon and Houston a major blow. Exxon laid off 1,900 U.S. employees, mostly in Houston, as crude demand and prices crashed during the pandemic. When the layoffs were announced in October 2020, Exxon employed about 12,000 in the Houston area.

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Even as oil markets have recovered with the rollout of coronavirus vaccines, Exxon continued to streamline its business to return more cash to shareholders and focus its efforts on its most profitable wells in the Permian Basin and offshore Guyana.

Exxon in October announced plans to move about 1,500 employees in The Woodlands to its Spring campus, further consolidating its Houston presence. Exxon put 290,814 square feet of office space at 1735 Hughes Landing in The Woodlands on the sublease market.  

Gil Staley, CEO of The Woodlands Area Economic Development Partnership, lamented the loss of Exxon in The Woodlands, but said the corporate relocation to the north Houston region will benefit The Woodlands' housing and retail markets.  

"There are people out there that truly think that Exxon Mobil’s campus is in The Woodlands, because it is so closely located near our community," Staley said. "They certainly are impactful to our community and will continue to be so." 

Exxon’s Spring campus boasts about 20 buildings, and before the pandemic, was home to more than 10,000 employees. There is a 100,000-square-foot gym, an on-site daycare center for 300 children, a town hall and auditorium, executive office and meeting rooms and an outdoor plaza that can host up to 3,500 people. 

Please check back for more on this developing story. 

Marissa Luck contributed.