It has been a turbulent start to 2016 for the U.K. Continental Shelf (UKCS), with storms battering infrastructure and dark clouds hanging over dozens of companies operating in the region.

A fierce storm hit vessels and platforms at the beginning of January, causing the Petrojarl Banff FPSO vessel to lose tension in five of its 10 anchors and drift up to 250 m (820 ft), while Shell’s Brent Delta platform also was damaged.

But it is the sinking oil price—which was hovering around the $33/bbl mark at the time of writing—that is really wreaking havoc in the region and already has claimed its first victim of the new year.

Iona Energy’s U.K. subsidiaries, Iona Energy Co. (U.K.) and Iona UK Huntington, which were developing the Orlando Field in the U.K. Northern North Sea as a subsea tieback to the Ninian platform, have been forced into administration.

There are many other companies under threat. The struggling Norwegian Energy Co.’s U.K. subsidiary has been made to give up its stake in the Huntington license to partners E.ON UK and Premier Oil after failing to keep up with payments for costs.

First Oil, which has a 15% stake in the Kraken development, has reportedly been put up for sale, while the U.K. North Sea’s largest independent producer, EnQuest, has seen its share price halved in the past year and is struggling with $1.6 billion of debt.

Some 65,000 jobs already have been lost in the U.K. sector as a result of the oil price crisis, and this could be the tip of the iceberg.

Warnings emerged toward the end of last year when oil prices were about $50/bbl that one-third of companies operating in the U.K. North Sea are at risk.

Another threat hanging over the region—that of strike action by members of the Offshore Contractors Association (OCA) who provide critical maintenance across installations on the UKCS—seems to have been avoided, though.

OCA members voted in a ballot to accept improved holiday entitlement and a joint review of the “three and three” equal time shift rotations. The agreement ends a prolonged dispute.

Unite Regional Officer Tommy Campbell said, “What our oil and gas sector urgently requires now is genuine cooperation between government, industry and the offshore trade unions to respond to this ongoing crisis, alleviating the pressure on the industry while protecting employment rights. This is the only way we can begin to build a safe and sustained recovery for the U.K. offshore sector.”

The biggest threat of all, however, is likely to come from a lack of investment in exploration drilling because of the low oil price.

Only six exploration wells are likely to be drilled on the UKCS this year, the lowest hit rate since prospecting began back in 1964. This follows on from just 13 wells drilled last year.

Without exploration to build on, the future is looking very bleak indeed.

Offshore