As California faces significant shifts in its energy landscape, numerous oil refineries are slated for closure. The Phillips 66 refinery in Los Angeles, where Wilfredo Cruz, a 37-year-old pipe fitter, works, will begin shutting down this month. This closure is part of a broader trend as California aims to reduce its reliance on fossil fuels.
The Impact of Refinery Closures
The Phillips 66 refinery and another facility operated by Valero collectively account for approximately 18% of California’s refining capacity. This reduction in capacity could significantly affect workers and communities. Phillips 66 is expected to cease active fuel production at its facility by the end of 2025, while Valero plans to idle its refinery in Benicia, near San Francisco, by the end of April.
- Phillips 66 refinery expected to close by end of 2025.
- Valero refinery will cease operations in April 2024.
- These closures impact around 18% of California’s refining capacity.
Concerns for Workers
More than 94,000 people are employed in California’s fossil fuel industry. However, estimates suggest that nearly 58,000 jobs may be lost in oil and gas sectors between now and 2030, primarily affecting those who are not nearing retirement.
Wilfredo Cruz earns a salary of $118,000 as a pipe fitter. Despite his earnings, he faces an uncertain future as he prepares for the refinery’s closure. “There’s not really a clear plan to transition workers into new fields,” Cruz expressed. To enhance his career prospects, he has enrolled in a cybersecurity training program funded by a state initiative.
State Response to Job Losses
In response to the impending job losses, California lawmakers established the Displaced Oil and Gas Worker Fund in 2022. This initiative aims to provide career training and connect displaced workers to new job opportunities.
- Nearly $30 million allocated for worker support and retraining.
- Funding expected to run out in 2027 without a plan for extension.
Governor Gavin Newsom has committed to assisting displaced oil workers. He has invested $20 million in the state budget for a pilot program aimed at training workers to plug abandoned oil wells in Kern and Los Angeles counties.
The Future of California’s Energy Industry
The closures highlight a tension within California’s energy policy as state officials balance reducing fossil fuel reliance with supporting displaced workers. The political discourse includes discussions on climate policy and its impact on jobs. Industry leaders argue for protecting jobs while pushing for a balanced approach to environmental sustainability.
As the state moves toward cleaner energy sources, workers like Wilfredo Cruz seek clarity and support in transitioning to new career paths amidst uncertainty. The future of jobs in California’s oil industry hangs in the balance as reforms and closures proceed.
