Photo taken on Augcryptomobilegamesios. 2, 2024 shows a Chevron gas station in El Monte, Los Angeles County, California, the United States. Oil giant Chevron on Friday announced the relocation of its headquarters from San Ramon, California, to Houston, Texas, becoming the latest company to exit California, the largest economy and most populous state in the United States. (Photo by Zeng Hui/Xinhua)

LOS ANGELES, Aug. 2 (Xinhua) -- Oil giant Chevron on Friday announced the relocation of its headquarters from San Ramon, California, to Houston, Texas, becoming the latest company to exit California, the largest economy and most populous state in the United States.

Chevron Chairman and CEO Mike Wirth and Vice Chairman Mark Nelson will move to Houston before the end of 2024 to co-locate with other senior leaders and enable better collaboration and engagement with executives, employees, and business partners, said the company in a news release.

Chevron, one of the world's leading integrated energy companies, currently has roughly 7,000 employees in the Houston area and approximately 2,000 employees in San Ramon. The company said it operates crude oil fields, technical facilities, and two refineries and supplies more than 1,800 retail stations in California.

"There will be minimal immediate relocation impacts to other employees currently based in San Ramon. The company expects all corporate functions to migrate to Houston over the next five years," said the company, adding that "Positions in support of the company's California operations will remain in San Ramon."

The announcement came weeks after rocket company SpaceX CEO and social media platform X owner Elon Musk said that he will move the headquarters of both companies from California to Texas.

According to the Center Square, a project of the Franklin News Foundation, the exodus of California businesses continued in recent years, with the greatest number relocating operations to Texas. The news website pointed out in a report in December that at least 237 companies have left California since 2005 due to the western state's ever-expanding regulatory and taxation climate, citing a tally kept by the California Policy Center in its California Book of Exoduses.

But California still reclaimed the top spot for housing the most Fortune 500 companies in the country, according to a report released by Fortune magazine in June.

With 57 companies headquartered within its borders, California edged out Texas and New York, which are tied for second place with 52 companies each, said the report. The Golden State's success comes despite losing five companies from the list this year. However, this loss was offset by the addition of nine newcomers, including food delivery company DoorDash, real estate investment firm Prologis, cleaning product manufacturer Clorox, and software company Workday, the report noted.■

Photo taken on Aug. 2, 2024 shows a Chevron gas station in El Monte, Los Angeles County, California, the United States. Oil giant Chevron on Friday announced the relocation of its headquarters from San Ramon, California, to Houston, Texas, becoming the latest company to exit California, the largest economy and most populous state in the United States. (Photo by Zeng Hui/Xinhua)

A man fuels a vehicle at a Chevron gas station in El Monte, Los Angeles County, California, the United States, on Aug. 2, 2024. Oil giant Chevron on Friday announced the relocation of its headquarters from San Ramon, California, to Houston, Texas, becoming the latest company to exit California, the largest economy and most populous state in the United States. (Photo by Zeng Hui/Xinhua)

Photo taken on Aug. 2, 2024 shows a sign of a Chevron gas station in El Monte, Los Angeles County, California, the United States. Oil giant Chevron on Friday announced the relocation of its headquarters from San Ramon, California, to Houston, Texas, becoming the latest company to exit California, the largest economy and most populous state in the United States. (Photo by Zeng Hui/Xinhua)

Photo taken on Aug. 2, 2024 shows a Chevron gas station in El Monte, Los Angeles County, California, the United States. Oil giant Chevron on Friday announced the relocation of its headquarters from San Ramon, California, to Houston, Texas, becoming the latest company to exit California, the largest economy and most populous state in the United States. (Photo by Zeng Hui/Xinhua)