California refinery workers are facing unprecedented career uncertainty as the state’s energy transition accelerates, with skilled tradespeople like pipe fitter Wilfredo Cruz reaching substantial earnings only to confront potential job loss when facilities close. The 37-year-old has worked for twelve years at the Phillips 66 refinery in Los Angeles, building his income to $118,000 annually, but now wonders what comes next as the facility prepares to cease operations.
Refinery Closure Impacts Skilled Workforce
Wilfredo Cruz represents thousands of skilled trades workers whose livelihoods are tied to California’s refining industry. “You feel kind of forgotten,” he describes, echoing sentiments across an industry facing rapid transformation. The Phillips 66 facility where he works as a pipe fitter will begin shutdown procedures this month, with active fuel production ending by late 2025.
The closure follows similar announcements across California’s energy sector. Valero Energy revealed plans to “idle, restructure or cease refining operations” at its Bay Area refinery in Benicia, affecting additional thousands of workers. According to industry analysis of climate transition impacts, these facilities represent approximately 18% of California’s total refining capacity.
Political Response to Energy Transition Challenges
California’s Democratic leadership faces complex challenges balancing climate goals with economic stability. Governor Gavin Newsom has pursued contradictory policies—signing legislation to speed oil well permitting while previously declaring he was “taking on big oil.” This inconsistent messaging creates uncertainty for workers and companies alike.
Recent legislative actions include laws aimed at preventing gas price spikes, allowing energy regulators to require refineries maintain fuel reserves. However, as coverage of California’s gas price policies indicates, these measures haven’t prevented refinery closures driven by broader market dynamics.
Economic Impact on Workers and Communities
The human cost of refinery closures extends beyond individual workers to entire communities:
- High-earning skilled jobs lost with limited replacement opportunities
- Municipal budgets impacted by lost tax revenues
- Workers facing retraining decisions later in their careers
- Regional economic ripple effects from reduced spending
Valero’s Benicia refinery alone contributes approximately $7.7 million annually in taxes, representing about 13% of city revenues. Similar economic impacts are expected in Los Angeles areas surrounding the Phillips 66 facility.
Worker Transition Stories and Solutions
Willie Cruz, Wilfredo’s father, provides a template for successful career transition. After his own refinery job ended thirty years ago, he utilized federal job training programs to become a respiratory therapist—a career change he describes as moving “from polluting to helping.”
Current workers face different challenges, with California’s energy profit regulations creating additional industry uncertainty. As oil refinery operations decline statewide, workers seek clarity about retraining programs and economic support.
Companies emphasize their commitment to fair treatment of workers during transitions. Phillips 66 states it is “committed to treating all our refinery workers fairly and respectfully throughout this process,” though specific retraining programs remain unclear.
Industry Future and Worker Prospects
California’s refining capacity has declined significantly over the past decade. According to federal data, the state dropped from the nation’s third-largest crude oil producer in 2014 to eighth-largest in 2024. This trend shows no signs of reversing as climate policies intensify.
Workers like Wilfredo Cruz face difficult decisions about whether to pursue similar skilled trade positions in other industries or undertake complete career changes. The path forward remains uncertain, with many workers expressing concern about matching their current earnings in new fields.
As energy sector reporting indicates, the transition affects multiple generations of workers, from veterans like Willie Cruz to mid-career professionals like his son. The human dimension of energy policy continues to unfold across California’s industrial landscape, with additional coverage available through related workforce transition analysis.
