That inconsistent messaging has left the industry\u2019s workers unsure of what the future holds.<\/p>\n
Refinery closures<\/p>\n
California was the eighth-largest crude oil producer in the nation in 2024, down from being the third-largest in 2014, according to the U.S. Energy Information Administration. The Valero and Phillips 66 refineries set to close account for roughly 18% of California\u2019s refining capacity, according to state energy regulators. They both produce jet fuel, gas and diesel.<\/p>\n
The Phillips 66 refinery will start shutting down this month and end active fuel production at the end of 2025, the company said. The closure is based on multiple factors and \u201cin response to market dynamics,\u201d Phillips 66 said.<\/p>\n
The announcement came after Newsom signed a law last year aimed at preventing gas price spikes<\/a> that allows energy regulators to require that refineries keep a certain amount of fuel on hand to avoid shortages when they go offline for maintenance. But the company said its decision was unrelated to the law.<\/p>\n Phillips 66 said it is \u201ccommitted to treating all our refinery workers fairly and respectfully throughout this process.\u201d<\/p>\n Valero announced plans to \u201cidle, restructure or cease refining operations\u201d at its refinery in the Bay Area city of Benicia by the end of April. The company didn\u2019t respond to emails seeking comment on the status of its plans.<\/p>\n Valero pays about $7.7 million annually in taxes to the city, making up around 13% of Benicia\u2019s revenues, City Manager Mario Giuliani said.<\/p>\n \u201cIt\u2019s a significant and seismic impact to the city,\u201d he said of the planned closure.<\/p>\n Forty-six oil refineries in California closed between 2018 and 2024, according to the state\u2019s Employment Development Department. The fossil fuel industry employs roughly 94,000 people in the state, according to the Public Policy Institute of California.<\/p>\n One study estimated that the state would lose nearly 58,000 workers in the oil and gas industries between 2021 and 2030. About 56% of those workers will have to find new jobs because they are not retiring, according to the 2021 report by the Political Economy Research Institute at the University of Massachusetts Amherst.<\/p>\n <\/p>\n Lights from the Phillips 66 Los Angeles Refinery Wilmington Plant are reflected in the water at dusk, Thursday, Oct. 2, 2025, in Los Angeles. (AP Photo\/Jae C. Hong)<\/p>\n Lights from the Phillips 66 Los Angeles Refinery Wilmington Plant are reflected in the water at dusk, Thursday, Oct. 2, 2025, in Los Angeles. (AP Photo\/Jae C. Hong)<\/p>\n Read More<\/p>\n Supporting displaced workers<\/p>\n Lawmakers approved the Displaced Oil and Gas Worker Fund in 2022 to help workers receive career training and connect with job opportunities. The state has since awarded nearly $30 million overall to several groups to help workers across the state \u2014 from oil-rich Kern County<\/a> to Contra Costa County in the Bay Area.<\/p>\n But the funding is set to run out in 2027, and state lawmakers wrapped up their work for the year without an agreement on whether to extend it.<\/p>\n Newsom spokesperson Daniel Villase\u00f1or said the governor is committed to supporting displaced oil workers \u201cand affected communities in transitioning into new and emerging jobs and economic opportunities.\u201d <\/p>\n Newsom approved $20 million in the state\u2019s 2022-2023 budget for a pilot program to train workers in the industry who\u2019ve lost their jobs to plug abandoned oil wells<\/a> in Kern and Los Angeles counties.<\/p>\n California needs a clear plan for workers who will lose jobs because of the state\u2019s energy transition, said Faraz Rizvi, the policy and campaign manager at the Asian Pacific Environmental Network.<\/p>\n \u201cWe\u2019re in solidarity with workers who have been displaced and who are looking for a relief to ensure that they\u2019re able to find work that is important for their communities,\u201d Rizvi said.<\/p>\n But Jodie Muller, president and CEO of the Western States Petroleum Association, said the state can protect jobs by changing its climate policies.<\/p>\n \u201cThe extremists fighting to close California refineries should explain why they are OK with destroying some of the best blue-collar jobs out there \u2014 because we certainly are not,\u201d she said in a statement.<\/p>\n Life as an oil worker<\/p>\n<\/p>\n