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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.

Winning Fossil Fuel Workers Over to a Just Transition

By Norman Rogers - Jacobin, March 18, 2024

This article is adapted from Power Lines: Building a Labor-Climate Justice Movement, edited by Jeff Ordower and Lindsay Zafir (The New Press, 2024).

I have a dream. I have a nightmare.

The dream is that working people find careers with good pay, good benefits, and a platform for addressing grievances with their employers. In other words, I dream that everyone gets what I got over twenty-plus years as a unionized worker in the oil industry.

The nightmare is that people who had jobs with good pay and power in the workplace watch those gains erode as the oil industry follows the lead of steel, auto, and coal mining to close plants and lay off workers. It is a nightmare rooted in witnessing the cruelties suffered by our siblings in these industries — all of whom had good-paying jobs with benefits and the apparatus to process grievances when their jobs went away.

Workers, their families, and their communities were destroyed when the manufacturing plants and coal mines shut down, with effects that linger to this day. Without worker input, I fear that communities dependent on the fossil fuel industry face a similar fate.

This nightmare is becoming a reality as refineries in Wyoming, Texas, Louisiana, California, and New Mexico have closed or have announced pending closures. Some facilities are doing the environmentally conscious thing and moving to renewable fuels. Laudable as that transition is, a much smaller workforce is needed for these processes. For many oil workers, the choice is to keep working, emissions be damned, or to save the planet and starve.

United Steelworkers (USW) Local 675 — a four-thousand-member local in Southern California, of which I am the second vice president — is helping to chart a different course, one in which our rank-and-file membership embraces a just transition and in which we take the urgent steps needed to protect both workers and the planet. Along with other California USW locals, we are fighting to ensure that the dream — not the nightmare — is the future for fossil fuel workers as we transition to renewable energy.

California’s Oil Country Hopes Carbon Management Will Provide Jobs. It May Be Disappointed

By Emma Foehringer Merchant and Joshua Yeager - Inside Climate News, February 21, 2024

On a recent Tuesday evening, several oil workers in Kern County, California, spoke out in support of a project that they hope will create much-needed jobs.

“What I’m hoping to get out of this is hope for my grandson’s generation,” said Allen Miller, a third-generation oilman who came to work in the petroleum-rich region in 1984. “That they can provide for their family the way my grandpa did and the way I did.”

The audience applauded Miller’s comments during a crowded public meeting in Taft, a city of about 8,500, in the heart of the state’s oil country. 

The proposed project, known as Carbon TerraVault 1, would store millions of tons of planet-warming carbon a mile beneath the nearby Elk Hills Oil Field. Oil production in that field and others nearby has sustained the county’s economy for over a century. 

“This is our oil field,” said Manny Campos, a longtime Taft resident and businessman. “I’m glad to see we are being intentional about keeping it that way and keeping the benefits local.”

Some environmental advocates are skeptical of the carbon removal industry — and its ability to create a significant number of jobs — but California policymakers view carbon removal and storage as a necessary tool to manage greenhouse gas emissions. 

The fledgling technology is a key part of the state’s plan to fight climate change, which also includes phasing out oil drilling by 2045. The county and California Resources Corporation (CRC), the oil company hoping to build the TerraVault, see carbon management as a vital new revenue stream. Kern County stands to lose thousands of jobs and millions in tax dollars as drilling declines 

But carbon storage facilities themselves are not currently projected to generate large numbers of jobs, according to a report prepared for the county. Kern’s own analysis shows the initial phase of the TerraVault project will only produce five permanent positions.

SEA CHANGE: UAW Signs on to Calls for Ceasefire

The labour-environment nexus: Exploring new frontiers in labour law

VICTORY!! at Ethos Light Turbine shop in Houston

Will the US have the workforce it needs for a clean-energy transition?

By Betony Jones and David Roberts - Volts, June 16, 2023

Will the US clean-energy transition be hampered by a shortage of electricians, plumbers, and skilled construction workers? In this episode, Betony Jones, director of the DOE’s Office of Energy Jobs, talks about the challenge of bringing a clean energy workforce to full capacity and the need for job opportunities in communities impacted by diminished reliance on fossil fuels.

Climate Justice in the North Sea

Offshore: North Sea Oil workers on the future of our energy system

Keeping California’s oil in the ground will improve health but affect jobs

By Harrison Tasoff - The Current, May 18, 2023

As society reckons with climate change, there’s a growing call to keep fossil fuels right where they are, in the ground. But the impact of curtailing oil production will depend on the policies we implement to achieve this.

An interdisciplinary team of researchers investigated the carbon emissions, labor and health implications of several policies to reduce oil extraction, with a special focus on how the effects vary across different communities in California. Their results, published in Nature Energy, illustrate the tradeoffs between different strategies. For instance, models banning oil extraction near communities produced greater health benefits across the state, but they also led to more job losses, with disadvantaged communities feeling about one third of both the costs and the benefits.

With a goal to reach carbon neutrality by 2045, California is currently implementing some of the world’s most ambitious climate policies. As the country’s seventh largest oil-producing state and the world’s fifth largest economy, California provides a unique setting to study supply-side decarbonization policies. It already has a carbon cap-and-trade program and is currently debating a setback policy that would ban new oil production near communities.

Many considerations

Petroleum production is a multifaceted endeavor. The greenhouse gas emissions from burning fossil fuels are the main driver of climate change. Extracting these resources also emits CO2 into the environment, in addition to air pollution and toxic substances. Any policies seeking to curb oil production will affect people for better and worse. The industry employed 25,000 Californians in 2019, and provides tax revenue to local governments. “Our analysis is trying to quantify what those tradeoffs look like as the state considers different policies,” said co-author Kyle Meng, an associate professor in UC Santa Barbara’s economics department and the Environmental Markets Lab (emLab) at the Bren School of Environmental Science & Management.

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