TL;DR:
- Phillips 66 announced it will close its Los Angeles-area refinery by 2025.
- The closure follows new California regulations aimed at preventing gas price spikes.
- The refinery accounts for 8% of California’s refining capacity.
- Phillips 66 plans to repurpose the 650-acre site with real estate development firms.
- Around 600 employees and 300 contractors will be affected, with support promised.
- The new law signed by Governor Newsom aims to stabilize gas prices and prevent shortages.
- Phillips 66 will still supply fuel in California using external sources and renewable energy.
Source: Foxbusiness
The ripple effect of losing 900 jobs is exponentially larger. Many of these employees, whether single or not, have families. They purchase from local merchants and participate in community activities. Their family members may also have jobs, and if they relocate, even more revenue is lost. The shrinking customer base reduces business profitability, leading to staff cuts. Green doesn’t exist in a vacuum.