The number of companies in the sector facing financial difficulties went up to 486 in 2014 compared to 288 in the previous year, according to the report.
Crude awakening for #oil services companies as significant distress doubles http://t.co/5MxhcNx0wN pic.twitter.com/LTSKNWG1s3
— Begbies Traynor (@Begbies) February 10, 2015
"Smaller oil and gas companies will be hardest hit by historically low oil prices and major cuts to investment in the industry as they lack the cash reserves the big players have to weather the storm," partner at Begbies Traynor Julie Palmer said in a statement.
Service and equipment providers are the companies most affected by the oil prices drop, the report said. In 2014 the number of distressed service and equipment providers went up by over 100 percent, from 93 to 201.
Global oil prices have significantly fallen since June 2014. The Organization of the Petroleum Exporting Countries (OPEC) in November 2014 decided not to cut oil output levels, which contributed to a further drop in prices. The Brent oil price which stood at around $110 per barrel in June, is currently hovering around $58 per barrel.
