Marathon Petroleum refinery on “indefinite idle” with large job losses coming this fall
Marathon Petroleum’s refinery on the Martinez/Concord border is on “indefinite idle” meaning the majority of the 700 full-time employees at one of Central Costa Costa’s largest employers are facing layoffs that will likely be completed before the end of the year.
Besides the loss of one of the area’s largest employers should the plant permanently close, there are youth sports facilities and the renowned “Mars” training facility for the world champion Blue Devils drum corps on refinery property. The long-term status of the soccer and baseball fields and drum corps training ground is as uncertain as the fate of the facility that first opened in 1913 as Avon Refinery.
In late April, the 2,200-acre plant was placed on temporary pause based on the dramatic decrease in fuel consumption as the coronavirus pandemic shelter-in-place stunted a majority of vehicle and airplane fuel demand.
On July 31, the other shoe dropped when Marathon Petroleum informed employees at its Martinez and Gallup, New Mexico refineries that they will “indefinitely idle these facilities with no plans to restart normal operations.”
Besides the over 700 full-time employees, it has been reported that 250 to 2500 contract employees worked at the plant on various projects.
The company notification said that as part of the changes, Martinez will be converted to a terminal facility. “We are also evaluating the strategic repositioning of Martinez to a renewable diesel facility, which aligns with California’s Low Carbon Fuel Standards objectives and MPC’s greenhouse gas reduction targets.”
The indefinite idling means most jobs will no longer be necessary and the phased reduction of staffing levels will begin in October.
Concord congressman Mark DeSaulnier reacted to the news saying, “This move is a big loss for our workforce and potentially the economy. That is why, before the pandemic hit and had a drastic impact on energy production, I started convening labor unions, environmental groups and local governments to talk about how we prepare for a shift to sustainable energy and renewables in Contra Costa.
“The transition needs to be as successful as possible for everyone and we cannot leave workers behind – they need to be guaranteed meaningful and comparable work. I will continue to bring together stakeholders to support workers, our community, and the environment and improve Contra Costa’s energy assets.”
The Bay Area is the second largest oil refining center on the West Coast and home to five refineries, four of which are in Contra Costa County.
Marathon spokeswoman Brianna Patterson adds, “Indefinitely idle means our processing units are no longer actively making transportation fuels and other refined products, and the equipment will be treated and prepared for long-term inactive service. In indefinitely idle status, some areas of the plant will remain in operation, including wastewater treatment and certain safety systems.
“We are evaluating the opportunity to strategically reposition Martinez as a 48,000 barrel-per-day renewable diesel facility. We can leverage the plant’s existing assets and infrastructure. This facility would create additional jobs beyond the 50 jobs that will remain to support terminal operations. If pursued, initial production would likely come online in 2022 with a full ramp up in production over a couple of years.”
The local refinery has gone through a succession of owners since Tidewater Associated Oil Company opened the Avon site. Tosco bought the refinery in 1976 and since then it has been operated by Ultramar, Tesoro, Andeavor and Marathon, which completed its purchase from Andeavor less than two years ago.
Marathon Petroleum Corporation (NYSE: MPC) is a leading integrated downstream energy company headquartered in Findlay, Ohio. The company operates the nation’s largest refining system with over three million barrels per day of crude oil capacity across 16 (soon-to-be 14) refineries. MPC’s marketing system includes approximately 7,800 branded locations across the US, including approximately 5,600 Marathon brand retail outlets.