Phillips 66 Cuts Staff Amid California Refinery Closures

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Written by Daniel Graeber for IIR News Intelligence (Sugar Land, Texas)

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Summary

People are out of a job because of refinery woes in California. With refineries shutting down, a state with the highest gas prices in the continental United States may have to rely on imports.

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277 Staff Cuts

With refineries closing across California, a filing with a state regulator shows Phillips 66 is planning to shed 277 employees from the payroll at its Los Angeles refinery complex.

Phillips 66 received its final batch of waterborne crude oil deliveries for its refinery complex in Los Angeles in October as preparations began to shut the facility. The company said it would start shedding staff a few months after the facility was shuttered.

On Friday, the Reuters news service reported that layoffs began, according to filings with regulatory agencies in California. The facility started operations in 1970 and data from Industrial Info show the refinery was formally closed in December. It was last listed as having 300 union-backed employees.

The Los Angeles refinery complex had a processing capacity of 133,000 barrels per day. Phillips 66 said last year it would look to meet consumer demand in California by looking outside the state for refined products. Amid the closure, the U.S. Energy Information Administration (EIA), part of the U.S. Department of Energy, said that California may be forced to import fuels from out-of-state refineries to meet its transportation demands.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Petroleum Refining Plant Database can learn more about the refinery complex--including capacities, investment values and necessary equipment--here and here.

California state laws mandate that refiners make a special blend of gasoline, called CARBOB, that's less harmful to the environment, but it's more expensive to make. That, along with state taxes, means California has the highest retail price for gasoline in the Lower 48 states. Travel club AAA listed a state average of $4.42 for a gallon of regular unleaded, compared with a national average of $2.90.

By the Numbers

• $4.42 for a gallon of gas in California
• 133,000 BBL/d capacity closed at P66's Los Angeles refinery complex
• 300 union-backed positions

The remaining refineries in California are connected by a network of in-state pipelines, though declines in refining capacity leave the state heavily dependent on foreign crude deliveries to meet demand, largely from Canada.

Room for Canada?

Canada, for its part, is looking to expand crude oil exports outside of North America in response to the bellicose rhetoric from U.S. President Donald Trump. His treasury secretary is said to be courting backers of an independence movement in oil-rich Alberta.

Much of the U.S. refining sector is tailored to run heavier crude oil grades like that found in Alberta. Canada remains the top supplier of foreign oil to the U.S. economy, despite the downturn in bilateral relations.

Phillips 66's earnings report for fourth-quarter 2025 included $239 million of pre-tax accelerated depreciation on the Los Angeles refinery complex.

After selling off the majority of its retail operations in the European market, Phillips 66 said it was taking a measured approach to 2026.

"While enhancing our portfolio to focus on our core assets and geographies, we have also taken a disciplined approach to improving operations, particularly in refining, and upheld our unwavering commitment to safety," Chairman and Chief Executive Officer Mark Lashier said.

Key Takeaways

• Job losses come from California refinery closures.
• State began work on high-speed rail.
• Demand could be met by imports.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).