Thirty years ago, Willie Cruz lost his job when the Powerine Oil Company closed its refinery in Santa Fe Springs, California. Now living in Arizona, Cruz recalls his decision to leave the oil industry and retrain as a respiratory therapist with support from a federal job training program. “I thought it was pretty cool, you know — go from polluting to helping, right?” Cruz said.
Today, his son Wilfredo Cruz faces a similar situation as the Phillips 66 refinery in Los Angeles, where he has worked for 12 years, prepares to close by the end of the month. The shutdown is part of a broader trend affecting thousands of oil workers across California as the state moves to reduce its reliance on fossil fuels.
Earlier this year, Valero announced plans to close its Bay Area refinery. According to state energy regulators, the closures of both Valero and Phillips 66 refineries represent about 18% of California’s refining capacity. Both facilities produce jet fuel, gasoline, and diesel.
Phillips 66 stated that it will begin shutting down operations this month and end active fuel production by late 2025. The company attributed the closure to various factors and “in response to market dynamics.” It emphasized its commitment to treating workers fairly during the transition: “Phillips 66 said it is ‘committed to treating all our refinery workers fairly and respectfully throughout this process.’”
Valero indicated plans to “idle, restructure or cease refining operations” at its Benicia facility by April’s end but did not respond to requests for comment regarding its progress. City Manager Mario Giuliani noted that Valero contributes about $7.7 million annually in taxes—roughly 13% of Benicia’s revenues—and described the planned closure as having a “significant and seismic impact” on the city.
California was ranked eighth among U.S. crude oil producers in 2024, down from third place in 2014 according to data from the U.S. Energy Information Administration. State records show that between 2018 and 2024, forty-six oil refineries have closed across California.
The fossil fuel sector employs around 94,000 people statewide based on figures from the Public Policy Institute of California. A study by the Political Economy Research Institute at University of Massachusetts Amherst projected nearly 58,000 job losses in California’s oil and gas industries between 2021 and 2030; more than half are expected not to retire but instead seek new employment.
To address these changes, lawmakers created the Displaced Oil and Gas Worker Fund in 2022 for career training and job placement assistance. Nearly $30 million has been distributed statewide since then; however, funding is set to expire in 2027 with no current agreement on an extension.
Governor Gavin Newsom’s spokesperson Daniel Villaseñor stated: “the governor is committed to supporting displaced oil workers ‘and affected communities in transitioning into new and emerging jobs and economic opportunities.’” In addition, Newsom allocated $20 million for a pilot program training former industry workers to plug abandoned wells in Kern and Los Angeles counties.
Faraz Rizvi from the Asian Pacific Environmental Network called for clearer planning: “We’re in solidarity with workers who have been displaced and who are looking for a relief to ensure that they’re able to find work that is important for their communities,” Rizvi said.
Jodie Muller of the Western States Petroleum Association argued that changing climate policies could protect jobs: “The extremists fighting to close California refineries should explain why they are OK with destroying some of the best blue-collar jobs out there — because we certainly are not,” she said.
For many employees like Wilfredo Cruz—who earns $118,000 annually as a pipe fitter—the industry offers stable wages without requiring a college degree. However, health concerns persist; Cruz showers immediately after work each day before seeing his young son and avoids letting him ride in his work vehicle due to chemical exposure risks.
Wilfredo Cruz has started online cybersecurity training through a state-funded program set to expire within two years.
