Introduction to common participants in the market

The oil and gas industry is a significant contributor to the UK economy:

1. •

   it supports around 152,000 jobs (both directly and indirectly)

2. •

   the industry contributed 0.8% of GDP in the second quarter of 2015 (down from a high of 2.5% in the second quarter of 2008)

3. •

   in 2016/2017, government revenues from oil and gas production were £1.2bn

4. •

   the UK is the second largest producer of oil in Europe and the third largest producer of gas

Historically, the industry has been buoyant, and insolvency practitioners have not had much involvement. In 2010, there were just four insolvencies in the sector. However, in 2015 oil prices hit an all-time low which saw insolvencies in the sector rise to 28 for that year. As a result of its maturity, the UK continental shelf is among the more expensive places in the world to produce oil: prior to the last downturn in oil prices in 2015/2016 the cost of producing