Given the need to make interest payments (and balance national budgets), my feeling was always that there would be a race to the bottom, price-wise, if over-supply ever materialized. I suspect we are about to find out, once again, that oil is somewhat different, but not completely different, re the way booms and busts play out. And we are in the bust phase of the oil market. The weak players need to go bust, and idle their production, before we find a bottom.
You should recognize, that while they may go bust, the production is not going to be idled.
Even if bankrupt, someone will buy every producing well for dimes in place of dollars and keep that oil flowing.
The Bust just limits the new wells drilled. The old wells decline in production over time, but they don't stop because oil falls to $50.