U.S. Oil Industry Bleeds Jobs, Cuts Spending as Prices Slide 

The United States oil sector is facing mounting pressure as falling crude prices, industry consolidation and sweeping cost cuts threaten to end the rapid production growth that had elevated the country to the world’s top producer.

Thousands of workers have been laid off while companies slash billions of dollars in capital spending, fuelling fears that U.S. output may plateau or even decline — a shift that could erode Washington’s influence in global energy markets and complicate President Donald Trump’s energy dominance agenda.

On Sunday, the Organization of the Petroleum Exporting Countries and its allies (OPEC+), announced plans to increase production by 137,000 barrels per day beginning in October.

Analysts view the move as part of the cartel’s strategy to claw back market share lost to U.S. shale producers in recent years.

The production hike has further pressured global oil benchmarks, with prices sliding nearly 12 per cent this year.

U.S. West Texas Intermediate (WTI) futures traded at $62.15 per barrel on Monday — a level close to breakeven for many American producers.

Experts say drilling activity is unlikely to recover unless prices stabilise between $70 and $75 per barrel.

Industry leaders have warned that the financial squeeze is taking a toll. ConocoPhillips, the country’s third-largest oil producer, said it would cut up to 25 per cent of its workforce.

Chevron also announced plans to lay off about 8,000 employees, representing 20 per cent of its global staff.

Oilfield service giants SLB and Halliburton have similarly reduced headcount.

A Reuters analysis found that 22 publicly listed U.S. oil producers — including Occidental Petroleum, ConocoPhillips, and Diamondback Energy — have collectively trimmed capital expenditure by $2 billion this year.

Major players such as ExxonMobil and Chevron were not included in the study but are also expected to scale back investments.

The rig count, a key barometer of drilling activity, has dropped by 69 so far this year, bringing the total to 414, according to data from Baker Hughes.

The decline signals further pressure on future output levels.

As of late August, crude production from the lower 48 states stood at about 13.4 million barrels per day, marginally below the record 13.6 million barrels per day achieved in December 2024.

Analysts caution that if current trends persist, the U.S. could struggle to maintain its status as a swing producer, leaving OPEC+ with more leverage in shaping global oil supply and prices.