California is taking an extraordinary step toward reshaping its energy landscape and reducing reliance on fossil fuels. This huge economic transition now has thousands of oil workers looking towards an uncertain future. Governor Gavin Newsom recently approved $20 million in the state’s 2022-2023 budget to fund a pilot program designed to train displaced workers in Kern and Los Angeles counties. The initiative focuses on plugging abandoned oil wells, providing a potential pathway for those who may lose their jobs in the coming years.
According to the Public Policy Institute of California, the fossil fuel industry already directly employs about 94,000 Californians. A study suggests that the state could lose nearly 58,000 jobs in the oil and gas sectors between 2021 and 2030. Alarmingly, an estimated 56% of these workers will have to find a new job themselves, as many are not close to retirement age. While his administration has put almost $30 million behind the effort to organize teachers, parents and students, Gov. These are tireless advocates that are committed to helping workers all over the state.
The future job losses are further compounded by the recent actions of the oil majors. Both Valero and Phillips 66 have recently announced refinery closures that cumulatively represent nearly 18% of California’s refining capacity. Valero plans to “idle, restructure or cease refining operations” at its Bay Area refinery in Benicia by the end of April. Adding salt to this tax injury, Valero pays the city just over $7.7 million a year in taxes, making up nearly 13% of Benicia’s revenue.
In Los Angeles, Phillips 66 has similarly signaled a desire to shutter its refinery by the end of April. Phillips 66 pipe fitter Wilfredo Cruz testifies on how the energy transition could benefit his community. After more than 12 years on the force his starting base salary was $118,000 per year. He made it clear that he has complicated feelings about the transformation to come.
“I thought it was pretty cool, you know — go from polluting to helping, right?” – Willie Cruz
Cruz raised important points about how the transition process is going for workers like him.
“There’s not really a real clear plan to be able to get workers from this oil industry into these new fields,” – Wilfredo Cruz
Shutdowns are symptomatic of a much larger trend. From 2018 to 2024, California is projected to lose 46 oil refining jobs, according to the state’s Employment Development Department. As of 2024, California became the eighth-largest crude oil producer in the country. This is a dramatic drop from being the third-largest producer only a decade ago in 2014.
As California rapidly transitions to greener energy infrastructure, the toll on local economies is undeniable. Benicia city councilman and former mayor Mario Giuliani explained the far-reaching impacts that could be caused by the refinery’s closure.
“It’s a significant and seismic impact to the city,” – Mario Giuliani
The move has created an uproar among proponents and opponents of America’s fossil fuel dependency. Jodie Muller, an Energy Security leadership group representative, taking to task advocates calling for refinery shutdowns.
“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,” – Jodie Muller
To help promote these transitions, the state government has created an innovative pilot program. This new effort is intended to avoid job losses altogether and provide better new opportunities to displaced workers. The initiative aims to retrain individuals for roles in environmental remediation, such as plugging abandoned wells, an essential task that addresses both job displacement and environmental concerns.
Though much work is being done to make this transition catered to oil workers, many are still anxious about what the future holds. The way forward remains hazy, with many questions about how best to place workers and target effective retraining still remaining. The continued fate of thousands of workers now lies in the hands of California, as it leads the nation in moving towards sustainable energy solutions.
