Record Number Of Insolvent Oil & Gas Firms Seen In 2016

Record Number Of Insolvent Oil & Gas Firms Seen In 2016
4th January 2017 Pentag Gears
Conceptual image of businessteam working cohesively. Interaction

Possible job losses in the oil and gas sector could be seen in the near future, with a new report revealing that a record number of companies in the industry became insolvent in 2016.

The study, published by accountancy firm Moore Stephens, revealed that 16 companies went bust last year, compared with none whatsoever back in 2012, the Independent reports.

Experts have now warned that the UK must make preparations in order to be ready to move to a more low-carbon economy, saying that communities would be left desolate when it becomes apparent that fossil fuels cannot be burned any more because of the impact on the environment.

Lead author of the survey Jeremy Willmont said: “The collapse of the price of oil has stretched many UK independents to breaking point … Unless there is a consistent upward trend in the oil price, conditions will remain tough for many of those and insolvencies may continue.”

The latest Energy Trends report from the Department for Business, Energy and Industrial Strategy revealed that production of oil and gas in the UK climbed by 8.3 per cent in the third quarter of last year, with imports dropping by one million tonnes.

At the same time, electricity supplied by renewables like wind, hydro and solar was enough to meet 59.4 per cent of the power needs of Scotland in 2015, climbing from the 49.7 per cent seen in 2014.

Dr Doug Parr of Greenpeace UK observed that it’s time for the realisation to dawn that the future of the planet no longer lies in fossil fuels.

Looking for industrial gear manufacturers? Get in touch with us at Pentag Gears today.