The future of California's oil workers hangs in the balance as the state undergoes a significant energy transition. This is a critical issue that affects thousands of workers and their families, and it's time to shed light on the challenges they face.
Thirty years ago, Willie Cruz experienced a shock when his workplace, the Powerine Oil Company refinery in Santa Fe Springs, announced its closure. Cruz, now 61 and living in Arizona, had dedicated five years to the environmental department, only to fear the prospect of another layoff. He made a bold decision to explore respiratory therapy, a field that aligned with his personal health concerns as an asthmatic. Fortunately, a federal job training program supported his transition.
Fast forward to today, and Willie's son, Wilfredo Cruz, finds himself in a similar predicament. The Phillips 66 refinery in Los Angeles, where Wilfredo has worked for 12 years, is planning to close by the end of the month. This is just one example of the larger trend in California, where the state is reducing its reliance on fossil fuels. Energy companies like Valero have already announced the closure of a refinery in the Bay Area, and this shift could result in the loss of tens of thousands of jobs.
California's leading Democrats are caught in a dilemma, trying to balance the loss of jobs and high gas prices with the state's climate policies. State energy regulators are negotiating to keep the Valero plant open, while Democratic Governor Gavin Newsom has signed legislation to speed up oil well permitting in the Central Valley. However, this inconsistent messaging leaves industry workers uncertain about their future.
California's crude oil production has decreased significantly over the years, dropping from the third-largest producer in 2014 to the eighth-largest in 2024. The upcoming closures of the Valero and Phillips 66 refineries will further impact the state's refining capacity, accounting for roughly 18% of its total capacity. These refineries produce jet fuel, gas, and diesel, and their shutdowns will have a substantial effect on the industry.
Phillips 66 has stated that the closure is based on various factors and market dynamics, and they are committed to treating their workers fairly during the transition. Valero, on the other hand, has announced plans to "idle, restructure, or cease refining operations" at its Benicia refinery by the end of April. The impact of these closures is not just limited to the industry; the city of Benicia relies on Valero for a significant portion of its annual revenue.
Between 2018 and 2024, 46 oil refineries in California have closed, and the fossil fuel industry still employs approximately 94,000 people in the state. A study estimates that nearly 58,000 workers in the oil and gas industries could lose their jobs between 2021 and 2030, with many of them needing to find new employment opportunities. To address this, lawmakers approved the Displaced Oil and Gas Worker Fund in 2022, providing career training and job connections. However, this funding is set to expire in 2027, and state lawmakers have yet to reach an agreement on its extension.
Newsom's spokesperson, Daniel Villaseñor, emphasizes the governor's commitment to supporting displaced oil workers and affected communities in transitioning to new economic opportunities. Newsom has approved funding for a pilot program to train workers to plug abandoned oil wells in Kern and Los Angeles counties. Faraz Rizvi, from the Asian Pacific Environmental Network, believes California needs a clear plan to support workers during this energy transition.
But here's where it gets controversial: Jodie Muller, president and CEO of the Western States Petroleum Association, argues that the state can protect jobs by changing its climate policies. Muller believes that the fight to close California refineries is destroying some of the best blue-collar jobs, and the industry offers a living wage without a college degree.
Wilfredo Cruz, for example, earns a base salary of $118,000 a year as a pipe fitter at the Phillips 66 refinery. However, he faces challenges, such as showering immediately upon returning home to protect his young son from harmful chemicals. Cruz is now enrolled in an online cybersecurity training course, funded by a state program that will soon expire.
The lack of a clear plan to transition oil workers into new fields leaves many feeling forgotten. California must address this issue head-on and find solutions that support both the environment and its hardworking citizens. What are your thoughts on this complex situation? Feel free to share your opinions and engage in a respectful discussion in the comments below.
