How California’s climate policies are forcing oil workers into career changes

Don’t miss the full story, whose reporting from Sophie Austin at The Associated Press is the basis of this AI-assisted article.

​California’s transition away from fossil fuels is forcing thousands of oil refinery workers to find new careers, as major facilities including Phillips 66 in Los Angeles and Valero in the Bay Area prepare to shut down, echoing a pattern of displacement that has affected industry workers for decades.

Some key facts:

• The Phillips 66 refinery in Los Angeles and Valero refinery in Benicia are set to close, eliminating roughly 18% of California’s refining capacity.

• Between 2018 and 2024, 46 oil refineries closed in California, with the fossil fuel industry employing approximately 94,000 people statewide.

• A 2021 study estimated California would lose nearly 58,000 oil and gas workers between 2021 and 2030, with 56% needing to find new jobs rather than retiring.

• California dropped from the nation’s third-largest crude oil producer in 2014 to eighth-largest in 2024.

• The state created the Displaced Oil and Gas Worker Fund in 2022 and has awarded nearly $30 million to help workers retrain, but funding expires in 2027.

• Wilfredo Cruz, a 37-year-old pipe fitter at Phillips 66 with 12 years of experience, earns a base salary of $118,000 annually.

• The Valero refinery closure will cost the city of Benicia approximately $7.7 million in annual tax revenue, representing 13% of the city’s revenues.

• Gov. Gavin Newsom approved $20 million for a pilot program to train displaced oil workers to plug abandoned oil wells in Kern and Los Angeles counties.

READ MORE: California oil workers face an uncertain future in the state’s energy transition