Argentina caught between a rock and a hard place
The British exploration group Desire Petroleum has started drilling for oil off the Falklands coast, despite repeat attempts by Buenos Aires to thwart its progress.
According to the Guardian, UK defence minister Bill Grammell has said he will take “whatever steps are necessary” to protect the hydrocarbon industry on its waters, following recent moves by Argentina to control traffic between its ports and the Falkland Islands.
Argentina’s president Cristina Kirchner issued a decree last week requiring vessels using the country’s ports to have a permit when departing or entering British-controlled waters. The government says that the exploration mission is illegal and Kirchner has petitioned the UN to mediate talks over the Falklands’ sovereignty, as well as blocking a cargo ship that the government suspected was carrying oil-drilling materials to the islands.
But Britain and the Falklands have brushed off the retaliation, saying shipping will not be affected as drilling supplies coming from Aberdeen will have little need for contact with Argentina. Many critics view Kirchner’s decree as a show of bravado intended to distract the country from growing domestic concerns and the government’s decreasing popularity. But if an oil bonanza is discovered, as Thatcher surmised in the 1980s, insult will be added to historic injury.
Argentina still claims sovereignty over its former territory lost in the 1982 Falklands war to Britian, and views the UK’s presence as an occupation. The issue is a matter of national pride for the South American country, with pupils taught in school from an early age that the islands are Argentine.
Geological surveys indicate there could be up to 60 billion barrels of oil underneath the seabed. But to date, searches for oil in and around the Falklands have proved disappointing, with exploratory projects in the late 1990s finding no reserves. Business analysts believe that the costly expedition also represents a high financial risk for investors. And equally, the preventative move by Kirchner is considered a potential business liability as it reduces opportunities in the country for companies that are also working in the Falklands.
The decree could increase the cost of exploration not only in the Falklands, but also in Argentina; as the permit requirements limit the number of investors and service providers in the industry, prices are likely to rise due to decreased competition.
When it comes to this historic dispute, there is no doubt that Argentina is caught between a rock and a hard place. Argentines may feel strong historic ties, but most readily admit that the islanders, if given the option, will choose either independence or British support over Argentine rule. And Buenos Aires is by no means gunning for a rematch, as diplomacy (however flaccid) appears to be its weapon of choice. In the long-run, Argentina has little to gain by continuing its claim to the islands, bar a highly successful irritation campaign against Britain. It appears that cutting the country’s losses and adding a footnote to the history books may yet be the best option.
Tags: Argentina, exploration, Falklands, Falklands War, Las Maldivas, offshore drilling, oil, oil bonanza, oil exploration, sovereignty, Thatcher
A welcome comment from an American. Pity the US Administration can’t be bothered. Still, that’s how you treat your longest and staunchest ally.
Argentina has NO claim to the Falkland Islands. If they want to try invasion again, well, there’s plenty of room for carcasses.
So they have the support of 32 South American and Caribbean states. So what, 32 criminal and narcotics oriented banana republics. Would they like to live in a bomb site?
Make no mistake, for as long as the Falkland Islanders wish to remain British, the British people will demand that the UK defends them.
I have no sympathy for imperialist, colonialist, war-mongering Argentines. At the first sign of physical belligerency, the UK should declare war.