By Chron Contributor Updated August 20, 2020
An oil-refinery worker runs the equipment that converts oil into petroleum products such as fuel or heating oil. These workers may operate pumps, regulate pipelines or gauge the amount of crude oil in tanks. Their salary depends in part on the industry in which they work, among other factors.
Oil refinery job growth trends are difficult to project due to volatility of the once booming oil and gas market. For example, the Journal of Petroleum Technolgy reported that thousands of jobs were lost in 2020 due to global trade wars, rock bottom oil prices, scaled back production and oil company bankruptcies. Consumer preference for green technology over fossil fuels could further limit job oil refinery jobs over the next decade.
Average Oil Refinery Salary
The Bureau of Labor Statistics reported that 40,370 oil-refinery workers earn an average annual wage of $73,830 or $35.49 an hour, as of May 2019. The top 25 percent of earners make $90,060 or more, with the top 10 percent of experienced workers making $100,070 or more. Meanwhile, the bottom 25 percent of workers earn $58,370 or less. Those in the lowest 10 percent earn $47,380 or less. Refinery operator trainee salary falls on the low end of the pay scale.
Aspects of the Oil Industry
Nearly half of these workers – 20,910 – were employed in petroleum-product manufacturing, the truest form of oil refineries. These workers earned an average of $77,520 a year, according to the statistics bureau. The 4,640 who operate refinery equipment in the service of crude-oil extraction averaged $72,680, while the 2,470 working on oil pipelines averaged $71,690.
Statewide Breakdown
Texas, known for its oil rigs, employed the largest number of refinery workers, according to the bureau, with 11,170 averaging $77,260 in pay. Louisiana, a fellow Gulf Coast state, had the second-largest number of workers, with 5,710 averaging $73,320. The best-paying state, meanwhile, was Montana – another state well-known for oil fields – with its 480 workers averaging $88,630 in pay.
Regional Breakdown
The Houston area of Texas was the largest regional employer of oil-refinery workers in the bureau's survey, with 5,040 workers averaging $78,720. The San Francisco Bay Area of California was second, with 2,250 workers and an average wage of $90,580. The best-paying region was the Billings, Montana area. There, 420 workers found employment at an average salary of $91,500.
FAQs
Refinery Operator I Salary in California
| Percentile | Salary | Last Updated |
|---|
| 25th Percentile Refinery Operator I Salary | $63,059 | March 26, 2024 |
| 50th Percentile Refinery Operator I Salary | $68,947 | March 26, 2024 |
| 75th Percentile Refinery Operator I Salary | $74,312 | March 26, 2024 |
| 90th Percentile Refinery Operator I Salary | $79,196 | March 26, 2024 |
1 more rowOil service firms make money when high demand for crude oil is driving exploration and production. Refiners make money when the demand for fuel and value-added petroleum products is high, and they don't mind when the price for crude goes lower.
What do oil refinery workers do? ›
Operate or control petroleum refining or processing units. May specialize in controlling manifold and pumping systems, gauging or testing oil in storage tanks, or regulating the flow of oil into pipelines.
How much does it cost to run an oil refinery? ›
Based on the cost distribution that is typical for oil-refineries -85 per cent crude oil, 15 per cent operating cost (Robinson, 2006) -the operating cost is usD 337 million per year, and the sum of these two make up the total annual cost (usD 2,245 million). ...
How much money can you make in refinery? ›
How much does a Refinery make in California? As of Apr 14, 2024, the average annual pay for the Refinery jobs category in California is $44,137 a year. Just in case you need a simple salary calculator, that works out to be approximately $21.22 an hour. This is the equivalent of $848/week or $3,678/month.
How much money does oil well make? ›
Today's oil price is hovering around $50 per barrel. So, the gross revenue can range from $5,000 per day for a small 100 barrel per day project to about $2.5 million per day for an offshore platform producing 50,000 barrels per day.
Who owned 90% of oil refineries? ›
By the late 1880s, Standard Oil controlled 90% of American refineries. This control of the market, along with the Southern Improvement Company scandal, caught the attention of politicians, who started passing anti-trust laws and prohibiting train rebates.
Which oil refinery pays the most? ›
Houston-based Phillips 66 paid its median worker $196,407, the highest of any company in the sector. Phillips was followed by Anadarko Petroleum Corp. at $183,445.
Are refineries making money now? ›
Profit on processing a barrel of crude at a typical European or U.S. refinery has jumped by about 33% year to date, while refining profit margins in Asia are up by around 9%, Refinitiv Eikon data showed.
Are refinery jobs worth it? ›
Advantages to working at a petroleum refinery
This figure can vary depending on factors such as the location; engineers employed in California and Colorado in the US can make 18% more than the average US industry salary. Those with a higher-level degree in the field can expect to earn 42% more than the median wage.
Entry-level oil refinery jobs may require working in enclosed spaces, near high-speed machines, around chemicals, and in high places. You may also need to lift up to 80 pounds, perform firefighting duties, and work in harsh weather conditions, so physical strength and stamina are essential to your success.
Is it safe to work in a refinery? ›
Oil refineries are one of the most dangerous places to work. Using you instincts and taking extra safety precautions can help you avoid being involved in one of these kinds of life altering incidents.
How much gas does a refinery make a day? ›
Production potential varies depending on time of year and status of the refinery. A rule of thumb is that roughly 50 percent of total capacity is gasoline production (about 1.0 million barrels of gasoline - 42 million gallons - is produced per day).
How do refineries make money? ›
Refineries make money by way of the crack spread; as noted earlier, it's the difference between how much they pay to buy raw crude oil and how much they make when selling the finished refined petroleum products. This spread fluctuates with the price of oil and with demand for refined products.
How many oil refineries are in the US? ›
There were 124 active oil refineries in the United States as of January 1, 2023. This was the lowest number in the period of consideration, with figures having fallen from a peak of 254 refining plants in 1982.
Is it safe to work in an oil refinery? ›
Oil refineries are one of the most dangerous places to work. Using you instincts and taking extra safety precautions can help you avoid being involved in one of these kinds of life altering incidents.
How much do oil rig workers get? ›
To illustrate this, below are some examples of how much oil rig workers get paid for different positions on an oil rig: Oil rig engineer: £33,375 per year. Oil rig radio operator: £30,436 per year. Oil rig caterer: £23,567 per year.
