ConocoPhillips, the largest U.S. independent oil producer, said it would reduce its capital expenditure budget by 4 percent to $5 billion next year due to technology gains, cost cuts and other improvements, according to Reuters.

The cut reflects not only the energy industry’s increasing push for efficiency gains that reduce the cost of drawing oil and natural gas from the earth but also low commodity prices, which have hampered Conoco and peers over the past two years.

The spending reduction comes after the company more than halved its budget last year.

“During the past two years, we have significantly transformed ConocoPhillips to succeed in a lower, more volatile price environment,” Chief Executive Officer Ryan Lance said in a statement.

Most of the budget next year will be spent on shale projects in the contiguous United States, with some focus on Alaska and Europe, as well as maintenance of existing operations.