Business Outlook 2018

4.2 Insolvencies During 2016, the number of insolvencies within the oil and gas industry reached an annual high of 40, according to statistics from the Department for Business, Energy & Industrial Strategy. A further 18 companies went through insolvency during the first three quarters of 2017. This data does not include companies that filed for insolvency outside of the UK. While a contraction in the market is somewhat inevitable following such a sharp downturn, there is a real risk that core capabilities and skills are being lost to other industries that cannot be replaced if activity picks up. If this trend continues, it may cause long-term structural damage to the UK supply chain and its ability to service both domestic and international markets in the future.

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Figure 10: UK Oil and Gas Insolvencies

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Support activities for petroleum and natural gas extraction Extraction of crude petroleum and natural gas

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16

14

12

5

10

8

6

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Number of Insolvencies

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7

2

0

Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3 2010 2011 2012 2013 2014 2015 2016 2017

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Source: BEIS

9

10

11

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