SACRAMENTO, Calif. — The landscape of California’s oil industry is undergoing significant transformation, raising concerns for thousands of workers as the state intensifies efforts to reduce its reliance on fossil fuels.
Thirty years ago, Willie Cruz faced a similar crisis when the Powerine Oil Company announced the closure of its Santa Fe Springs refinery, where he had worked in the environmental department.
Now, with a refinery near Los Angeles set to close, Cruz finds himself advising his son, Wilfredo Cruz, who has spent over a decade employed at Phillips 66.
The Phillips 66 refinery is among two major plants slated for shutdown, which collectively account for 18% of California’s refining capacity.
Cruz, now 61 and living in Arizona, was propelled to shift careers after the closure of his previous workplace, fearing job stability in the oil industry was uncertain.
He pursued respiratory therapy, motivated by his own battle with asthma, and found employment helping others instead of contributing to pollution.
“From polluting to helping, you know — I thought it was pretty cool,” he reflected.
Today, his son Wilfredo, 37, faces the potential loss of his job as Phillips 66 planned to cease active fuel production by the end of 2025.
With the closure of Phillips 66 and Valero refineries, job security is becoming a pressing issue across California.
Earlier this year, Valero announced intentions to idle, restructure, or cease operations at its Benicia refinery by the end of April, emphasizing the extent of the looming layoffs.
State energy regulators are grappling with how to manage these impending job losses while ensuring residents are not burdened with soaring gas prices, an issue the oil industry attributes to California’s climate policies.
California was once the eighth-largest crude oil producer in the U.S. according to the U.S. Energy Information Administration, a dramatic drop from third place in 2014.
The recent announcements have highlighted a trend, as a staggering 46 oil refineries in California closed between 2018 and 2024, with the fossil fuel industry employing approximately 94,000 residents, as cited by the Public Policy Institute of California.
The political climate surrounding these closures is complicated.
Democratic leaders, including Governor Gavin Newsom, have taken steps to deter job losses while facing criticism for their inconsistent stance on the oil industry amid significant climate goals.
Newsom previously declared intentions to challenge major oil companies yet is now negotiating to keep refineries operational in response to rising gasoline prices.
In light of these closures, labor impacts are already being felt, as studies project nearly 58,000 workers from the oil and gas sectors could lose jobs from 2021 to 2030.
Research indicates that around 56% of those displaced will have to seek new employment rather than retiring, underscoring the urgency of transition strategies for displaced workers.
In 2022, California lawmakers established the Displaced Oil and Gas Worker Fund aimed at facilitating career retraining for affected workers, allocating nearly $30 million to various organizations statewide.
However, with funding expected to run out in 2027, uncertainty prevails over future support measures.
In response to these challenges, Newsom’s administration has allocated $20 million from the budget to train displaced oil workers to plug abandoned oil wells in Kern and Los Angeles counties.
Despite these efforts, concerns linger regarding the adequacy of plans to support workers transitioning away from the fossil fuel sector.
Faraz Rizvi, policy and campaign manager at the Asian Pacific Environmental Network, emphasized the importance of developing a coherent strategy for displaced workers.
“They’re looking for a relief to ensure that they can find work that is essential for their communities,” Rizvi said, reflecting growing worker anxiety in the state.
Conversely, industry leaders like Jodie Muller, CEO of the Western States Petroleum Association, argue that the state’s climate policies directly contribute to inevitable job losses.
“It’s about providing opportunities and protecting jobs,” Muller noted.
Will Wilfredo Cruz, who earns a base salary of $118,000 annually, has begun pursuing online cybersecurity training, funded by the state’s displaced worker initiative.
He expressed concerns about the lack of a clear plan for transitioning workers into new sectors, a sentiment echoed by many in the industry feeling overlooked amid California’s energy transition efforts.
Cruz remarked on his dual priorities of providing for his family while concerned about potential exposure to harmful chemicals that could affect the health of his young son.
“I shower immediately when I get home,” he shared, highlighting his protective measures.
As California adjusts its energy landscape, the juxtaposition of job losses in the oil sector and the state’s environmental goals showcases the complexities of this transition, with many workers left uncertain about their futures.
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