California’s oil workers are facing an uncertain future as refinery closures threaten thousands of jobs. Willie Cruz, a former worker at a now-closed Southern California refinery, reflects on his own transition from the oil industry to a new career, setting the stage for a growing concern among current workers.
Job Losses Loom as Refineries Shut Down
The Phillips 66 refinery in Los Angeles is set to cease operations by the end of this month. This closure is part of a wider trend, with the Valero refinery in the Bay Area also planning to reduce operations. Combined, these refineries represent around 18% of California’s refining capacity, producing essential products like jet fuel, gasoline, and diesel.
Economic Impact of Refinery Closures
The refiners’ closures come amid California’s efforts to cut reliance on fossil fuels. California ranked as the eighth-largest crude oil producer in the United States in 2024, down from the third position in 2014. Valero’s Bay Area refinery contributes significantly to local tax revenue, paying about $7.7 million annually—approximately 13% of Benicia’s total revenues.
- 46 oil refineries closed from 2018 to 2024.
- Around 94,000 people are employed in the fossil fuel industry statewide.
- An estimated 58,000 oil and gas workers may lose their jobs by 2030.
Support for Displaced Workers
In response to potential job losses, California lawmakers established the Displaced Oil and Gas Worker Fund in 2022. This fund aims to provide career training and job opportunities for impacted workers, with nearly $30 million awarded to various organizations since its inception. However, funding is projected to run out by 2027, leaving many questioning the future of the program.
State Initiatives and Worker Concerns
Governor Gavin Newsom has pledged support for displaced workers and communities impacted by the transition away from fossil fuels. In the state budget for 2022-2023, Newsom allocated $20 million for a pilot program that trains workers to plug abandoned oil wells. Nonetheless, many workers remain apprehensive about the lack of a comprehensive plan for job transitions.
Faraz Rizvi from the Asian Pacific Environmental Network emphasizes the need for robust job transition strategies. Conversely, Jodie Muller from the Western States Petroleum Association argues for maintaining jobs through more favorable climate policies.
Life Inside the Oil Industry
For many, such as Wilfredo Cruz, a pipe fitter at Phillips 66, the oil industry’s paychecks provide a solid living without requiring a college degree. With a base salary of $118,000, Cruz has benefited significantly from his work. However, the risks associated with the job weigh heavily on him.
Cruz takes precautions to limit his child’s exposure to hazardous materials, indicating the complexities of working in the oil sector. While he is currently enrolled in an online cybersecurity course—funded by the state’s job training initiative—he expresses concern over the clarity of pathways for workers moving from traditional oil jobs to new careers.
The future for California’s oil workers hangs in the balance as the industry shifts, leaving many to navigate an uncertain road ahead.
