Chevron Corporation (NYSE: CVX) reported earnings of $2.0 billion, or $1.09 per share, for the third quarter of 2015, compared with $5.6 billion, or $2.95 per share, in the 2014 third quarter.

Sales and other operating revenues in Q3 2015 were $33 billion, compared to $52 billion in the year-ago period.

Earnings for Chevron’s upstream operations were $59 million, compared to $4.6 billion for the year-ago quarter last year. Downstream earnings were $2.2 billion in Q3, compared to $1.4 billion in the 2014 quarter.

John Watson, Chairman and CEO of the San Ramon-based company, said, “While downstream earnings remained strong, lower overall earnings reflected weaker market prices for both crude oil and natural gas, which depressed upstream profitability.”

He said Chevron reduced operating and administrative expenses 7% lower than last year, and Chevron anticipates further reductions.

Capital and exploratory expenditures for 2016 will be $25-28 billion, roughly 25% lower than this year’s budget,” Watson said. “We expect further reductions in spending for 2017 and 2018, to the $20 to $24 billion range, depending on business conditions at the time. With the lower investment, we anticipate reducing our employee workforce by 6–7,000.”

Chevron is continuing to sell assets. In the last two years these sales have generated $11 billion, and the company expects $5-10 billion in additional proceeds by the end of 2017.

In upstream operations, Chevron’s worldwide production was 2.54 billion barrels per day in the latest quarter, compared to 2.57 a year earlier. U.S. upstream operation incurred a loss of $603 million, compared to profits of $929 million a year earlier, due to sharply lower crude oil realizations, higher depreciation and the absence of gains on asset sales. These were partially offset by higher crude oil production and lower operating expenses.

Net oil-equivalent production of 730,000 barrels per day in Q3 2015 was up 53,000 barrels per day, or 8%, from a year earlier. Production increases in the Gulf Mexico, the Permian Basin in Texas and New Mexico, and the Marcellus Shale in western Pennsylvania were partially offset by normal field declines and the effect of asset sales.

The net liquids component of oil-equivalent production increased 9% in the 2015 third quarter to 505,000 barrels per day, while net natural gas production increased 6 percent to 1.35 billion cubic feet per day.

The company’s U.S. average sales price per barrel of crude oil and natural gas liquids was $42 in Q3 2015, down from $87 a year ago. The average sales price of natural gas was $1.96 per thousand cubic feet, compared with $3.46 in last year’s third quarter.

International upstream operations earned $662 million in Q3 2015 compared to earnings of $3.72 billion a year earlier. The decrease was due to sharply lower crude oil realizations and higher tax items, partially offset by lower operating expenses.

The average international sales price for crude oil and natural gas liquids in the latest quarter was $45 per barrel, down from $93 a year earlier. The average price of natural gas was $4.68 per thousand cubic feet, compared with $5.73 in the 2014 quarter.