In a Clean Energy Future, What Happens to California’s Thousands of Oil Refinery Workers?

By Danielle Riedl and Devashree Saha - World Resources Institute, April 23, 2024

California is often considered the United States’ greenest state — a first-mover on climate policy, renewable energy, electric vehicles and more. But at the same time, the state is still a fossil-fuel production powerhouse.

This is especially true for its petroleum refineries, which turn crude oil into transportation fuels (like gasoline) and feedstocks for making chemicals. Despite declining oil production in the state, California still has the third-largest crude oil refining capacity in the country, just after Texas and Louisiana. About 83% of its refined petroleum is used for transportation, a sector that produces half of the state’s greenhouse gas emissions. California is also the country’s largest consumer of jet fuel and second-largest user of motor gasoline, fuels that are processed and refined at petroleum refineries.

At the same time, California has a legal requirement to cut 85% of its emissions by 2045. Phasing down petroleum refineries, along with petroleum-based transportation fuels, are crucial steps in meeting that goal. Which begs the question: What happens to the thousands of workers, families and communities who rely on the state’s oil refineries for jobs and tax revenues?

While California is developing a detailed roadmap on how it will reduce its emissions, it doesn’t yet include a plan for addressing the impact of refinery closures — specifically, loss of jobs, incomes and the critical tax revenues that support communities’ schools, healthcare systems and more. California therefore has an opportunity to not only lead on phasing down America’s refineries, but to also make the transition a just one.

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Disclaimer: The views expressed here are not the official position of the IWW (or even the IWW’s EUC) and do not necessarily represent the views of anyone but the author.