Declining oil prices are causing oil and gas companies to significantly cut capital expenditures and security spending. Projects seen as discretionary will be delayed or cancelled, including some deepwater and shallow water projects in Angola, Nigeria, and Ghana. In response, companies plan to reduce security spending by 30-50% through measures like headcount reductions, contract renegotiations at lower costs and scopes, and consolidating security functions. However, some cost-cutting has also left gaps in security coverage. Security providers need to focus on achieving lower costs by using local resources, offering value-added services, diversifying into technology solutions, and considering industry consolidation models.