A Southern California oil refiner is shutting down its operations just days after Gov. Gavin Newsom signed his oil mandate into law.
Phillips 66 announced Wednesday that it plans to cease operations at its Los Angeles-area refinery.
The big picture: The oil company will shut down the refinery in the fourth quarter of 2025.
- Phillips 66 Chairman and CEO Mark Lashier said in a statement that the company is working with land development firms to evaluate the future use of its property near the Port of Los Angeles.
- “We understand this decision has an impact on our employees, contractors and the broader community,” Lashier said. “We will work to help and support them through this transition.”
- The reinfer currently employs around 600 people and 300 contractors.
- Phillips 66 also accounts for over 8% of California’s refining capacity at its Los Angeles-area refinery.
Driving the news: Newsom signed his oil mandate on Monday, requiring oil refiners to maintain a minimum fuel reserve at all times. Newsom has argued that a minimum reserve will protect Californians from spikes in the price of gas.
- Newsom’s mandate also gives the California Energy Commission more regulatory control over refiners.
What we’re watching: Despite plans to shut down its refinery, Phillips 66 said that it will work with the State of California to maintain current levels and potentially increase supplies to meet consumer needs.
- Phillips 66 plans to supply gasoline from sources inside and outside its refining network.
Republican outcry: “Thanks to Gavin Newsom’s showboating and incompetence, hundreds of workers will lose their jobs while California drivers will face a massive price hike,” said Assembly Minority Leader James Gallagher (R–Yuba City).
- “As Democrats double and triple down in their war on our energy industry, the closure of this refinery is the predictable result. Great work, Gavin.”
