Financial performance in Q3 was hit by a 50% slump in oil prices year on year. A further US$60 billion in impairments contributed to weak earnings and rising gearing underlining the severe pressure that the oil and gas sector is under at US$50/bbl. But it was a strong quarter for production growth with 16 players delivering double digit increases despite 2015 spend being down an average of 31% year on year. Oil and gas companies are also making real progress in reshaping their investment strategies for a sustained period of low prices; the Supermajors are on track to fund dividends organically in a US$60/bbl world while the Independents continue to use all levers available to balance the books. Corporate M&A is back on the agenda and we also expect opportunities to emerge to reload conventional exploration portfolios.