The collapse in prices and US$88 billion of impairments pushed many companies into the red in Q4 2015. Gearing crept up and nine players now have leverage above 60%. Even the Majors were not immune. But the market responded positively to increasingly tough austerity measures. The sector is once again demonstrating its resilience – the prices required for cash flow neutrality are falling rapidly and are now as low as US$35/bbl for some US Independents.