Oil giant Chevron has announced it is moving its headquarters out of California and relocating to Texas. 

In a press release, the oil giant said it is moving its headquarters out of San Ramon, California, to Houston, Texas. The move will mark the first time Chevron will be headquartered outside of California since its founding more than 100 years ago.

In addition to moving its headquarters, Chevron also noted that its Chairman and CEO Mike Wirth as well as Vice Chairman Mark Nelson will both move to Houston before the end of the year. 

It is unclear why Chevron is moving its operations. It can be noted that the state of California sued the oil company and other energy giants last year, accusing them of downplaying the risks of fossil fuels. 

How Will the Move Affect Chevron Employees

In the release, Chevron noted that its relocation will have "minimal immediate" impacts on employees currently based in San Ramon, adding that positions in support of the company's California operations will remain in the city. However, all corporate functions will migrate to Houston. The move will be done over the next five years.

Chevron currently has approximately 2,000 employees in San Ramon and 7,000 workers in Houston, according to the release. 

READ ALSO: Intel Will Lay Off Over 15,000 Workers After Posting a $1.6bn Loss in Revenue

Chevron is the latest in a growing number of companies that have left or announced plans to leave California. Many of the moves were brought about by a combination of increased operating costs and strict regulatory laws.

Last month, Elon Musk announced that SpaceX and X, formerly known as Twitter, would also be leaving California for Texas after Gov. Gavin Newsom, D-CA, signed the SAFETY Act, which prohibits school districts from requiring teachers to inform parents if a child wants to be identified by a different gender. 

"This is the final straw," Musk wrote in a post on X. "Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas."

Other companies that have moved out of California over the past years include Tesla, Oracle, CBRE, AECOM, Charles Schwab, and McKesson. 

READ NEXT: Nvidia Finally Faces DOJ Antitrust Investigation After Push From Senator Warren and US Progressives