Oil Price Rebound May Come Too Late For UK Oil Sector

9 Jan 2017   United Kingdom

The ‘lower for longer’ oil price reality of the past two years has spared virtually no one in the industry, and the UK’s oil and gas companies have been among the hardest hit, strained by the oil price slump in the high-cost production area of the North Sea. Troubles with refinancing and declining capital investment in North Sea projects have taken their toll, especially on smaller independents, a report by accountancy firm Moore Stephens shows. A total of 16 UK-based oil and gas companies became insolvent in 2016, compared to just 2 businesses that went bust in 2015, to 6 insolvencies in 2014, 1 in 2013, and not a single one in 2012. Moore Stephens flagged concerns that many hedging contracts – that had secured higher prices for some producers – now have expired. In addition, oil and gas companies have been facing problems with refinancing as banks are […]

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