Reviewed: 4th August 2016
Once one of the wealthiest cities in the UK, Aberdeen is facing a crisis as the slump in the price of oil continues. Just a couple of years ago the price of a barrel of crude oil was $100 or more. In February 2016, it had dropped to $35 per barrel.
The industry’s decline has caused significant job and financial instability for oil and gas sector workers, both in the city and off-shore. Top level executives are being laid off as companies close down, and with little hope of recovery, many are facing huge levels of debt via astronomical mortgage repayments and other types of borrowing.
More than 150 jobs are being lost every day, and from a corporate perspective, it’s anticipated that 43% of oil fields in the North Sea could make a loss if prices don’t rise.
Add to this a rapidly declining local property market, and the outlook for Aberdeen is currently very bleak.
As a result of falling oil prices, those lucky enough to be in employment are having to accept lower pay and longer working hours. In fact, concerns have been raised about health and safety as the shifts for off-shore workers become increasingly long.
For those who have already lost their jobs, there’s little prospect of further employment in the area. The sheer level of limited company debt has forced many businesses into liquidation, and a ripple effect is causing city centre shops and restaurants to close as people simply can’t afford to spend on non-essentials.
On a personal level, the number of individuals facing sequestration is rising steeply. Unsustainable mortgage repayments and excessive levels of other unsecured debt have made it impossible to stay afloat financially.
Real Business Rescue in Scotland helps directors to deal with limited company debts, as well as individuals facing personal debt problems. Obtaining professional insolvency advice should be the first step when facing such challenges, as there are a number of solutions available.
Real Business Rescue in Scotland operates from four offices, one of which is in Aberdeen. If you are struggling with debt due to the oil and gas industry’s downturn, call one of our experts to arrange a confidential meeting free-of-charge.
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