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.