The future of California's oil workers hangs in the balance as the state embarks on an ambitious energy transition. This transition, aimed at reducing reliance on fossil fuels, has left many workers uncertain about their livelihoods.
Thirty years ago, Willie Cruz experienced the shock of a refinery shutdown, an event that would shape his career path. Now, his son, Wilfredo Cruz, faces a similar dilemma as the Phillips 66 refinery in Los Angeles prepares to close its doors.
The impact of this transition is far-reaching. Thousands of workers could lose their jobs, and the state's leading Democrats are caught between a rock and a hard place, grappling with the loss of jobs and high gas prices attributed to climate policies.
But here's where it gets controversial... State energy regulators are negotiating to keep some refineries open, while Democratic Governor Gavin Newsom has signed legislation to speed up oil well permitting. This inconsistent approach has left industry workers confused about their future.
California's crude oil production has declined significantly, dropping from the third-largest producer in 2014 to the eighth in 2024. The upcoming closures of Valero and Phillips 66 refineries will further reduce California's refining capacity, impacting the production of jet fuel, gas, and diesel.
Phillips 66 has announced its closure, citing market dynamics, while Valero plans to "idle, restructure, or cease refining operations" in Benicia. The potential loss of tax revenue and jobs in Benicia is a cause for concern.
And this is the part most people miss... Forty-six oil refineries have closed in California since 2018, and the fossil fuel industry employs around 94,000 people in the state. A study estimates that nearly 58,000 workers could be displaced by 2030, with many needing to find new employment.
The Displaced Oil and Gas Worker Fund was approved in 2022 to provide career training and job opportunities, but its funding is set to expire in 2027. Governor Newsom has shown support for displaced workers, approving a pilot program to train workers to plug abandoned oil wells.
Faraz Rizvi, from the Asian Pacific Environmental Network, emphasizes the need for a clear plan to support workers transitioning into new fields. On the other hand, Jodie Muller, president of the Western States Petroleum Association, believes changing climate policies could protect jobs.
For many workers, the oil industry offers a pathway to a living wage without a college degree. Wilfredo Cruz, a pipe fitter earning $118,000 annually, is now pursuing cybersecurity training, feeling forgotten in the transition process.
As California moves forward with its energy transition, the fate of its oil workers remains a complex and controversial issue, leaving many to wonder: What's next for these dedicated individuals?
