While there were six insolvencies in the oil and gas industry in 2013, that figure rose to 18 businesses in 2014, more than three times the average of number of insolvencies in the sector in the previous four years.

Jeremey Willmont, head of restructuring and insolvency at Moore Stephens, said: ‘The fall in the oil price has translated into insolvencies in the oil and gas services sector remarkably quickly.

'The oil and gas services sector has enjoyed very strong trading conditions for the last 15 years, so perhaps they have not been quite so well prepared for a sustained deterioration in trading conditions as other sectors would have been.’

As oil and gas extraction becomes more challenging, companies working on harder to extract wells are likely to be hardest hit, as those projects are rendered uneconomic by falling oil prices.

The Brent oil price has fallen from around $120 (£75) in June 2014 to $59.27 today, virtually wiping 50% of the price in six months.

In addition, many businesses serve global operators such as Shell and BP, which are cutting investment in some projects, so the retrenchment in the sector is likely to have widespread impact.  

Kevin Phillips, international tax partner, Moore Stephens, said: ‘George Osborne announced a number of measures aimed at supporting the UK oil and gas industry in his Autumn Statement last week, including a 2% cut in the rate of the supplementary charge on UK ring-fenced profits.

‘Unfortunately, in the context of the steep and sudden oil price decline, these are unlikely to provide any meaningful boost to the oil and gas sector and in any event, only benefit UK production. They will, therefore, do nothing to alleviate the pressure on the service companies that depend on this sector.’