Plunging Oil Prices Taking A Toll On Some Companies

Plunging oil prices have been blamed for a sharp rise in the number of U.K. oil and gas companies going bust.

According to research by the accountancy firm Moore Stephens, last year, 28 oil and gas service firms entered insolvency, up from 18 in 2014.

Moore Stephens said the increase was an almost inevitable result of the drop in the oil price and the consequent cancellation of projects worldwide. It estimates £140 billion worth of projects were cancelled last year.

The accountancy firm said the rise in oil and gas firm insolvencies was in stark contrast to 2010, when just four firms went bust in the 12 months to the end of September.