Falkland Islands oil: myth or reality?

Drilling of the first well in the Falkland Islands turned to be unsuccessful, the British oil and gas explorer, Desire Petroleum, announced.

Experts believe that this disappointing announcement undermines hope of finding off the Falklands hydrocarbons for industrial use. Shares in Desire Petroleum, were immediately down 49,5% amid fears that the region’s reserves might be disappointing. A spokesperson for the Desire Petroleum noted, however, that the company will decide on further drilling after it collects all necessary data at the depth of 2,550 metres. Experts hope their initial forecasts about no less than 60 billion barrels of oil in the area to be true.

First mention of rich oil reserves off the Falklands was in late 1970s. Already then experts said the amount of oil in the Falklands exceeded those in the bed of the North Sea 13 times. Some analysts blame those reports on an armed conflict between Great Britain and Argentina in 1982. April 2 will mark 28 years since the beginning of that war, which took lives of about 1,000 people on both sides.

If oil fields in the Falklands really were the main reason for the war, oil and gas which Desire Petroleum has been drilling for are already stained with blood of the British and Argentinean soldiers. However, business interests often prevail over ethics and morale. In view of scarcity of oil in the North Sea, Britain will soon have no other choice but search for hydrocarbons off the Falklands, despite all protests coming from Argentina, which claims sovereignty over what it calls the Islas Malvinas. Apparently, the official London is not going to debate with Argentina either over the sovereignty of the Falklands or intentions to build an oil industry in its waters.