The future of California's oil workers hangs in the balance as the state accelerates its shift toward renewable energy. But here's where it gets controversial: while this transition is hailed as a necessary step to combat climate change, it leaves thousands of workers facing an uncertain and often frightening reality. Thirty years ago, Willie Cruz, then an employee at a Southern California oil refinery, was blindsided when the plant abruptly shut down. Now 61 and living in Arizona, Cruz recalls the anxiety of that time. After five years in the environmental department of Powerine Oil Company, he found himself at a crossroads. Fearing further layoffs, he pivoted to respiratory therapy, a field he found personally meaningful due to his asthma. A federal job training program funded his education, and he reflects, “It felt empowering to transition from an industry that polluted to one that heals.”
Today, history seems to be repeating itself as Willie advises his son, Wilfredo Cruz, a 37-year-old pipe fitter at the Phillips 66 refinery in Los Angeles, which is slated to close by the end of the month. Wilfredo, earning a base salary of $118,000 annually, was drawn to the industry by its promise of a living wage without a college degree. But the job came with trade-offs: daily showers to remove potential chemicals and strict rules to protect his 2-year-old son from exposure. Now, he’s enrolled in an online cybersecurity course, funded by a state program set to expire in a few years. “There’s no clear roadmap for workers like me to transition into new fields,” he laments. “It feels like we’ve been forgotten.”
California’s energy transition is poised to displace thousands—possibly tens of thousands—of workers in the coming years. Earlier this year, Valero announced the closure of a Bay Area refinery, and state energy regulators are scrambling to keep it operational. Meanwhile, Democratic leaders are grappling with the dual challenges of job losses and soaring gas prices, which the oil industry blames on the state’s climate policies. Governor Gavin Newsom, who once vowed to “take on big oil,” recently signed legislation to expedite oil well permitting in the Central Valley, a move that has left workers confused about the state’s priorities.
And this is the part most people miss: California’s crude oil production has already dropped from the third-largest in the nation in 2014 to the eighth-largest in 2024. The closures of the Valero and Phillips 66 refineries alone account for roughly 18% of the state’s refining capacity. Both produce jet fuel, gasoline, and diesel, raising questions about energy security and economic stability. Phillips 66 cites “market dynamics” as the reason for its closure, while Valero’s plans remain unclear, leaving Benicia, a city that relies on the refinery for 13% of its revenue, in financial limbo.
Between 2018 and 2024, 46 oil refineries in California shuttered, and the fossil fuel industry currently employs about 94,000 people statewide. A 2021 study estimates that nearly 58,000 oil and gas workers could lose their jobs by 2030, with 56% needing to find new employment. To address this, lawmakers established the Displaced Oil and Gas Worker Fund in 2022, allocating nearly $30 million for career training and job placement. However, the funding is set to expire in 2027, and no agreement has been reached to extend it.
Newsom’s administration insists it’s committed to supporting displaced workers, pointing to a $20 million pilot program training former oil workers to plug abandoned wells in Kern and Los Angeles counties. But advocates like Faraz Rizvi of the Asian Pacific Environmental Network argue that more is needed. “We stand in solidarity with displaced workers,” Rizvi says. “They deserve clear pathways to meaningful, community-serving jobs.”
On the other side of the debate, Jodie Muller of the Western States Petroleum Association contends that the state could protect jobs by reevaluating its climate policies. “Closing refineries destroys some of the best blue-collar jobs out there,” she argues. “We won’t stand for it.”
Here’s the burning question: Can California achieve its climate goals without leaving its workers behind? As the state charts its course toward a greener future, the fate of thousands hangs in the balance. What do you think? Is California doing enough to support its displaced workers, or is more needed? Share your thoughts in the comments below.
