Updated: 5th February 2020
Energy North, a trade group based in northern Scotland, has entered liquidation as the fall in oil prices in recent months takes its toll on operators involved in the energy industry.
Operating as a not-for-profit, Energy North was created in order to promote the interests of oil and gas companies in the north of Scotland but many of those businesses are currently experiencing tough times as a result of the decline in oil prices.
At its height, there were 200 members of the Energy North trade body but the decision was taken earlier this month to enter the organisation into liquidation as a result of falling incomes and a lack of membership commitments.
The group also cited “significant uncertainties affecting the sector which are expected to impact further upon future sources of funding,” as a factor contributing to its impending closure and liquidation.
“We very much regret that it is not possible in the current climate for the organisation to continue its valuable work on behalf of our members across the energy sector. We will now work with the liquidators during this difficult period,” said Sidney Johnston, Energy North’s chairman.
In other news from the same sector, the Wood Group, an oil services operator based in Aberdeen, recently announced that it has shed 5,000 jobs over the first half of 2015.
The group reported half-year pre-tax profits worth £102.9 million, which reflects a sharp downturn in fortunes compared with the same period of 2014 when it generated close to $150 million in pre-tax profits.
Of the jobs cut by the Wood Group this year, 1,000 related to roles in the UK, while the remaining 4,000 were split between the business’ American and Middle Eastern operations.
“Conditions in the oil and gas markets remain very challenging,” said the Wood Group’s chief executive Bob Keiller in a statement.
“With little prospect of short term improvement in market conditions, we will focus on remaining competitive and protecting our capability, working with clients to reduce their overall costs, increase efficiency and safely improve performance.”
Over the course of the past 12 months, the price of Brent crude oil has fallen by more than 50 per cent and now sits at less than $50 per barrel. With 78 offices across the UK, you’re never far away from expert and confidential advice.