Phillips 66 Co. announced it will cease conventional crude oil processing operations at its dual-sited refinery in Los Angeles by the end of 2025, citing unsustainable market conditions. The refinery, spanning the Carson and Wilmington sites, currently processes 138,700 barrels daily and employs approximately 600 permanent workers and 300 contractors. The closure reflects the company’s shift towards renewable energy production following the recent transformation of its Rodeo, California refinery into a hub for renewable fuels.
The closure, however, raises concerns about California’s fuel supply and potential price increases. As Rock Zierman, CEO of the California Independent Petroleum Association, explains, “100% of the oil produced in California is delivered to California refineries. When one shuts down, it is harder to get in-state crude to market since we are connected by pipelines. This makes the state more dependent on foreign imports which already account for 75% of the oil we consume and is typically $5-$6 more expensive per barrel than California crude. That drives up gasoline prices.”
As Phillips 66 explores the development of the 650-acre refinery site, Californians must deal with the economic and logistical impacts of losing a critical component of its refining infrastructure.