Phillips 66 announced plans to shut down a Los Angeles-area refinery by the end of 2025 due to market concerns. The refinery, which accounts for about 8% of California’s refining capacity, will impact 600 employees and 300 contractors. The company indicated it will continue to operate in the state but is evaluating the future use of its properties near the Port of Los Angeles. Phillips 66 expressed commitment to serving California and meeting commercial and customer demands. The refinery consists of two facilities built over a century ago.
The closure of the Los Angeles-area refinery comes shortly after Democratic Gov. Gavin Newsom signed a law aimed at preventing gas price spikes by requiring refineries to maintain a certain level of fuel on hand. Phillips 66 supported the state’s efforts to ensure fuel availability to meet consumer needs. The company also operates a refinery near San Francisco accounting for about 5% of California’s refining capacity. Another Phillips 66 refinery in Santa Maria shut down in 2023 as part of plans to convert the San Francisco-area site into a renewable fuels facility. Newsom has been pushing for oil and gas regulations, calling the state legislature into a special session in 2022 to pass legislation aimed at holding oil companies accountable for excess profits.
California Governor Newsom has been a vocal advocate for climate policies and frequently praises the state’s leadership on environmental issues. California has implemented policies to phase out fossil fuel-powered vehicles, including lawn mowers, cars, big rigs, and trains. Newsom has pressured lawmakers to pass regulations on oil and gas companies, particularly in response to concerns about excessive profits. The state has taken steps to reduce greenhouse gas emissions and promote a transition to renewable energy sources. Phillips 66’s decision to close the Los Angeles-area refinery is part of a larger trend towards renewable fuels and energy sustainability.
Phillips 66’s decision to shut down the Los Angeles-area refinery will have significant impacts on the local economy and workforce. The closure will affect hundreds of employees and contractors who operate the refinery. The company is working with land development firms to assess the future use of its properties near the Port of Los Angeles. Despite the closure, Phillips 66 remains committed to serving California and addressing commercial and customer needs. The refinery’s closure reflects changing market dynamics and the company’s efforts to adapt to evolving energy trends and regulations.
The Los Angeles-area refinery’s closure marks a shift towards renewable fuels and energy sustainability in the state of California. Phillips 66’s decision to convert its San Francisco-area site into a renewable fuels facility aligns with broader efforts to reduce reliance on fossil fuels and combat climate change. Governor Newsom’s advocacy for oil and gas regulations underscores the state’s commitment to environmental protection and energy transition. California’s policies to phase out fossil fuel-powered vehicles demonstrate its leadership in promoting renewable energy sources and reducing greenhouse gas emissions. The closure of the Los Angeles-area refinery is a significant development in the state’s efforts to advance towards a cleaner and more sustainable energy future.
