Oil refinery closures leave workers searching for a job that ‘just doesn’t exist’

Wilfredo Cruz went to the doctor in October of last year to have his brain scanned because he was experiencing vertigo — a dangerous condition when you’re a refinery worker like Cruz and your job entails climbing 200-foot towers and fixing heavy machinery.

While he waited at the doctor’s office, he picked up his phone and felt a moment of panic, seeing 100 unread text messages in the last hour.

The Phillips 66 refinery complex in Los Angeles had just said that it was going to close, and Cruz learned in that moment that he would eventually lose his job, along with nearly 1,000 other employees and contractors.

“It was a big shock, a gut punch,” said Cruz, who thinks his last day will be sometime in April. Workers say layoff notices will begin to go out in the next few months.

It’s just one of a handful of refineries that have closed or that intend to close in the coming months. For the workers — most of whom lack a college degree — it’s unlikely they’ll find another job that pays as well, despite recent efforts by the state to help. Though the Trump administration signed legislation creating billions of dollars in tax cuts for oil and gas companies, it’s not going to save these jobs or offer the workers any money to train for new ones.

“You have people earning between $80,000 to $200,000 a year, and almost everyone is a high school graduate and that’s it,” said Cruz. “To go out and look for another job that’s even somewhat comparable, it just doesn’t exist.”

When he isn’t at the refinery, Cruz is wearing a plain black shirt, shorts, and New Balance sneakers — anything that’s easy to clean if his 2-year old son throws food at him, he said. His vertigo is better these days, almost a year after the refinery said it would close, but he now has to find a job so he can support his family and pay his mortgage. The best bet, he said, is to go back to school and start a new career in cybersecurity.

Thousands of jobs lost

California has about 100,000 workers in the fossil fuel industry, according to an August report by the Public Policy Institute of California. That’s about the population of a small city, such as Merced or Redding. As the state continues its transition to renewable energy, many of those jobs may disappear — and some already have.

Refineries have been closing all across the U.S. in recent years, but California has been hit hard, especially in Contra Costa County, Solano County and parts of southern Los Angeles, near Long Beach. First it was the Marathon refinery in Contra Costa County in 2020, which put hundreds of people out of work before the plant converted to renewable fuels with a fraction of the former workforce. Then Phillips 66 began shifting one of its Contra Costa County refineries to renewables and closed an affiliated plant on the Central Coast. A Valero refinery in Solano County is also expected to close in the next few months, leading to more layoffs.

Publicly, oil companies have given vague justifications for the closures, though oil industry advocates, such as the Western States Petroleum Association, blame the state’s increased regulation and its renewable energy transition. Environmental groups point to the decrease in oil demand as more Californians turn to electric vehicles.

With thousands of jobs at stake, Gov. Gavin Newsom and the Democratic-led state Legislature this summer tried to strike a deal with Valero to avoid the closure of its Solano County refinery. Those conversations are still “ongoing,” said Daniel Villaseñor, the deputy director of communications for the governor.

What the state has offered so far is a $30 million pot of money, which refinery workers can use to train for new jobs. The money went out to four different workforce organizations last February, and they have until 2027 to distribute it to workers in various ways, such as through scholarships.

Workers cross a street as smoke billows from a fire at the Martinez Refinery Company in Martinez in Contra Costa County on Feb. 1, 2025.

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Jose Carlos Fajardo

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Bay Area News Group

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A worker stands atop a tank car that carries liquefied petroleum gas at the Marathon Martinez Refinery on April 27, 2020.

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Jose Carlos Fajardo

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Bay Area News Group

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The United Steelworkers union, which represents many of the Phillips 66 refinery workers, received about a third of the money and recruited Cruz to help find eligible workers at his job. Some of his colleagues are trying to become truck drivers, emergency medical technicians, or radiologists, but the state money rarely covers all the training expenses, he said.

In his spare time, Cruz is enrolled in an online, year-long certificate program in cybersecurity at UC San Diego and is using the state money to cover the $4,000 tuition. He said he wants a remote job, something that would allow him to spend more time with his son.

The steelworkers union has pushed Newsom for much more, ideally “hundreds of millions of dollars per year” to help retrain the refinery workers it represents, said Mike Smith, the national bargaining chair for the union. The governor has yet to make any new promises.

Six-figure salary, no degree required

The average work day at a refinery might entail crawling into small spaces, withstanding searing heat, or operating heavy machinery with precision. And it can be dangerous: In 2006, the roof of a storage tank collapsed, killing one person and injuring four others at the Phillips 66 refinery complex in Los Angeles, which was then owned by an earlier iteration of the company.

Twelve-hour shifts are the norm, including many night shifts, and overtime is common. Nearby residents complain that the Phillips 66 facilities have a foul smell and that they pump cancer-causing chemicals into the air, creating health risks for the entire community. Workers are required to wear full-body fire retardant uniforms each day because fires are a constant risk, such as last week, when an explosion rocked a Chevron refinery in El Segundo. There was no major damage.

Flames and smoke from a large fire rises from the Chevron refinery in El Segundo on Oct. 2, 2025.

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Daniel Cole

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Reuters

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Though the work can be physically demanding, the rewards are plentiful. Union workers at the Phillips 66 refinery complex make about $115,000 a year, plus a pension and an 8% match on 401k contributions, said Smith.

Together, the Phillips 66 refineries in Los Angeles and the Valero refinery in Solano County produce about 17% of the state’s gas. Without these facilities, Californians could see higher prices at the pump, according to an independent analysis by the federal government.

Laurie Wallace, a self-described artist, never wanted to work in oil and gas, but the money was a big draw, she said. For years, she was working as many as three different jobs, saving up money for punk and ska concerts while flipping burgers at In-N-Out, helping customers at Ace Hardware, or working shifts at a local cafe. Her husband at the time learned about a training program for refinery workers. He said he was going to apply and when she said she was interested, he told her she would never get in.

“I took the test and got the better score,” Wallace said. “I don’t do well with people telling me not to do something.”

In the nearly 18 years since that exam, she’s worked at the Phillips 66 refinery complex in Los Angeles, handling the heavy machinery that transports California’s oil and gas. Wallace often earns over $100,000, especially with overtime, allowing her to achieve what many might consider the American Dream: a four-bedroom house in the Long Beach suburbs with an affordable mortgage and family vacations every year, including cruises to Mexico and trips to Las Vegas.

She’ll likely see a pay cut in any future job. In a 2023 study by the UC Berkeley Labor Center, UC Irvine professor Virginia Parks helped survey those who had been laid off by the Marathon oil refinery in Contra Costa County in 2020. She found that roughly a quarter were unemployed or no longer looking for work over a year after losing their jobs. Some workers found opportunities at other oil refineries, though they made less money because they lacked seniority or a union. Others found jobs at utility companies or chemical treatment plants, and a few started working in health care or retail.

“I don’t think (refinery workers) need long training programs but they do need some sort of reskilling,” said Parks, who wants the state to provide workers more financial help. She’s especially interested in state grants that give workers income support while they search for a skilled job. “Otherwise they’re just going to find whatever (job) they can.”

Her study found that workers who did find a job after getting laid off made about $38 an hour — $12 less than before.

Lots of experience but few ways to prove it

Since the layoffs at the Phillips 66 refinery complex will happen slowly over the next few months, Wallace still has a job for now. Her department is responsible for receiving and shipping the oil and gas that arrives at the Port of Los Angeles, work that is so essential that she thinks she’ll be one of the last people laid off, potentially in 2027.

Over the years, she’s driven the trains that transport tons of oil and gas, operated cranes to carry pieces of pipelines and climbed on top of the massive fuel storage tanks that line the 110 Freeway. Often, she said she worked six or even seven days in a row.

Laurie Wallace at the end of her overnight shift in front of the Phillips 66 refinery in Wilmington, Los Angeles, on Oct. 1, 2025.

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Stella Kalinina

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CalMatters

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In April, she was diagnosed with breast cancer and got a modified schedule. Now she works night shifts and only two or three days in a row. After finishing her radiation therapy around 2 p.m., she changes out of her usual attire, a punk T-shirt and jeans, and gets into her work uniform. She then has to get through Los Angeles traffic, bypass the plant’s two layers of security, and travel across the refinery, which takes up multiple city blocks, or about 650 acres. Her shift begins at 4:30 p.m., where she spends 12 hours in a room, alone, under fluorescent lights, actively monitoring 16 different computer screens for changes in pressure or chemistry.

After so many years, staying alert during a night shift is second nature, she said with a laugh. “I’m a little high strung. I have no problem staying awake.”

The stakes are high. If she isn’t paying attention and a machine fails or a tank has the wrong pressure, fuel leaks can occur. In 2014, a hole burst in an underground pipeline near the refinery, pouring 1,200 gallons of oil into a residential street.

Although Wallace has used many cranes over the years, she doesn’t have a crane operator’s license. In fact, all of the training that she’s done happens on-site, and her employer isn’t required to track it or give her any credential, such as a license or certificate, that could transfer to another job. After the Marathon refinery in Contra Costa County closed, former workers struggled to substantiate their skills when looking for new jobs, the UC Berkeley Labor survey found.

Drawing directly on the study, and with support from the steelworkers union, longtime labor activist and state Sen. María Elena Durazo, a Los Angeles Democrat, proposed a bill this year that would require employers to provide their workers with proof of any on-the-job training or education. The governor has until Oct. 12 to sign or veto the bill.

It’s only “a first step” though, said Parks, a co-author of the study. Long-term, she said refinery workers should have the option to acquire independent certificates or credentials, such as a crane operator license, that prove their skills and don't rely on an employer at all.

“It’s not ideal but it’s temporary”

So far, only a fraction of the oil and gas workers who are eligible for state support have actually received it.

“We just started enrolling members,” said Rosi Romo, who coordinates the grant program on behalf of the steelworkers union.

Though the steelworkers union received the money last March, only about 100 people have participated so far, said Romo, most of them in Southern California. She said the program can fund 650 scholarships, offering up to $15,000 in tuition for each worker

In Kern County, where the oil industry is a major employer, the local job centers received over $11 million from the state, which they’ve used to help nearly 370 former oil and gas workers retrain in new careers, including trucking and nursing. The job centers have enough money to serve around 750 people, said Danette Williams, who works in marketing for the centers, known as the Employers’ Training Resource.

Unlike the steelworkers union, which is only giving out scholarships, Williams said the Employers’ Training Resource is also offering to reimburse 50% of wages during the first 480 hours of the workers’ new jobs. Romo said she wasn’t aware that was possible under the union’s contract with the state, but if it is, she said she’d try to offer the same benefit.

The other organizations who received the grant money did not respond to CalMatters' questions.

The Phillips 66 refinery in Wilmington, on Sept. 30, 2025.

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Stella Kalinina

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CalMatters

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Romo, along with other representatives from the steelworkers union, said the work schedule at the Phillips 66 refinery complex is one reason why workers have yet to use most of the money. As of August, about a quarter of union employees have already left the facility for other opportunities, said Smith, the national bargaining chair for the union. The remaining employees are left working overtime.

Once layoffs begin in the coming months, Romo and Smith said they expect an uptick in the number of workers taking advantage of the scholarship money.

Phillips 66 did not respond to multiple requests for comment about its overtime policies or other ways it may be supporting workers’ job transitions.

Cruz said he’s working six days a week now, 12 hours each day. To make progress on his cybersecurity course at UC San Diego, he tries to listen to lectures and audiobooks during his commute or while eating lunch or dinner during his two, 30-minute breaks. After he puts his son to sleep around 9 p.m., he has a few hours to study, though he has to wake up at 5 a.m. to make it to his shift on time. “It’s not ideal but it’s temporary,” he said.

Wallace has a slight advantage, since she started taking online classes in 2020 to complete her associate degree. She’s still one class short, but she hasn’t had the time to finish it. Between her radiation therapy and the 12-hour night shifts, she said it’s unlikely she’ll be able to study for at least another year while she works with the skeleton crew that’s closing the refinery.

If she had time, she said she would finish her associate degree and use the state training grant to help offset the cost of a bachelor’s degree. But because the state tuition grants expire in 2027, it’s quite possible she won't be able to use the tuition money at all.

This article was originally published on CalMatters and was republished under the Creative Commons Attribution-NonCommercial-NoDerivatives license.