Oil and gas producers in the US are being laid off, investing less, and producing less waste as declining oil prices cause a sustained industry decline.

The world oil and gas industry is preparing for a lengthy downturn, and layoffs and investment reduction are spreading among the large producers. Thousands of job cuts have been announced by ConocoPhillips, Chevron and BP as companies cut back on projects to save cash in the declining crude prices.

The industry analysts caution that the scenario is at its worst in the United States where shale production is only profitable at prices of approximately $65 a barrel. It is even expected that by the beginning of 2026, Brent crude will drop below $60, which would damage profitability in the years to come.

Kirk Edwards of Latigo Petroleum stated that the issue is not specific to Conoco, but rather a warning sign for the entire US oil and gas industry. Chevron has already been trimming its workforce by 8,000, BP has already laid off 4,700 positions and ConocoPhillips is potentially laying off 3,250 jobs by Christmas.

Majors are also declining all over the world. Saudi Aramco sold a portion of its pipeline network to raise 10 billion dollars and Malaysia's Petronas cut 5,000 positions. The global capital expenditure will decrease by 4.3 percent in the year 2021, which is the first to decrease since 2020.

"Even though a few manufacturers resort to outsourcing and online tools to cover the loss, analysts fear the declining investment can make future provision weak. It is difficult for domestic oil producers, and that is costing jobs," Roe Patterson of Marauder Capital said.

The decline highlights the precarious position of the oil and gas markets because firms are finding it hard to keep up with the changing energy environment.