Thanks for the fast reply.
http://imgur.com/a/zbHSx
2nd pic is 1st pic with more bark peeled off.
I can't disprove worms, but I see no evidence of worm activity.
I read something about sunburn on these forums, but figured that wasn't an issue since I'm in San Diego, and there are no seasons here. Now that I think of it, the damage is a bit more severe facing away from the house (south?), but on some of the branches, it clearly extends all the way around. Is painting now too late to be useful?
Airlayers? Maybe I should google.
I don't think we've cut any nearby trees, but now that this tree is dying, we've been pruning several dead branches.
The fence nearby is newer than the tree's ailment (decade?), but still a year or so old. It's also plastic. We haven't bbq'd in years, and don't think the neighbors are either.
If nutrient problem, what is it missing?
So I cover the whole tree in grafting compound? Do I peel off the damaged bark first?
I also forgot to mention our gopher problem, but digging suggests that its tunnels aren't close enough to the tree.
As for rescuing shoots... I cut off a 5inch long segment of branch, pot it, and hope it roots?
Thanks