ABC News·2025-10-12 12:28Core Insights - California is facing significant job losses in the oil industry as it transitions away from fossil fuels, with thousands of workers potentially affected by refinery closures [3][4][5] - The state government is attempting to balance climate policies with the economic impact on oil workers, leading to inconsistent messaging and uncertainty for those in the industry [4][10] Industry Overview - California was the eighth-largest crude oil producer in the U.S. in 2024, down from third place in 2014, indicating a decline in the state's oil production capacity [5] - The closures of the Phillips 66 and Valero refineries will account for approximately 18% of California's refining capacity, which includes the production of jet fuel, gasoline, and diesel [5][6] Job Displacement and Support - An estimated 58,000 workers in the oil and gas industries may lose their jobs between 2021 and 2030, with 56% of those workers needing to find new employment rather than retiring [9] - The Displaced Oil and Gas Worker Fund was established in 2022 to provide career training and job opportunities, with nearly $30 million awarded to various groups, although funding is set to expire in 2027 [10][11] Economic Impact - The planned closure of the Valero refinery in Benicia is expected to have a significant economic impact, as the company contributes about $7.7 million annually in taxes, representing around 13% of the city's revenues [8] - The fossil fuel industry employs approximately 94,000 people in California, highlighting the scale of potential job losses due to the energy transition [8] Training and Transition Challenges - Workers are expressing concerns about the lack of a clear plan for transitioning to new jobs, with some currently enrolled in training programs that may not be sustainable in the long term [10][15] - The state has allocated $20 million for a pilot program to train displaced workers for jobs related to plugging abandoned oil wells, indicating efforts to support the transition [11]