RE:Something will happen
You're right, longer term the Saudi's, especially, need oil priced closer to $90 or $100 - the main reason being that they need the revenue to fund social programs to placate the Saudi populace. People will recall the Arab Spring uprisings were muted in Saudi Arabia due to government cash infusions into various social spending initiatives on such things as education, infrastructure and other social programs... mostly with the aim of quelling growing unrest amongst the Saudi population. In the short-term, Saudi Arabia can play a variation of the game "chicken" with other oil producing nations... the question however, is how long can they play this game of chicken, and which country will blink first in the face of growing unrest in the domestic population... will it be Russia? the Saudis? other OPEC nations in Africa perhaps? I doubt the Iranians will blink, as that population has been used to hardships imposed by sanctions.
The other thing to remember, that is often forgotten when there is capitulation in the oil market (or any other commodity, for that matter), is that often the cure for low prices is in fact low prices. Debt is somewhat of a concern... but given deflationary pressures which are further exacerbated by falling commodity prices, I'm not sure why some people are panicking about a possible spike in interest rates. If anything, interest rates will likely stay lower for longer.
But as Warren Buffet famously says, when the tide goes out, we soon find out who's been swimming naked... which kind of sums up what's happening in this sector of the market.
fwiw, I'm patiently waiting on the sidelines, with a few energy players on my watchlist (Legacy included).