ENERGY FACTS #11

Falklands Oil

7.14.2007

The Falklands, over which Britain and Argentina fought a 1982 war, has an estimated 60-billion barrels of oil. This would make the Falklands, with a 2800 population, owner of one of the largest reserves in the world.

Argentina suspended an agreement with UK for joint exploration of resources, saying sovereignty issue must be settled first.

 But even with oil at $70+/bbl, very little seems to be happening. As far as we know, less than 20 exploration wells have been drilled. While the weather is like the Shetlands and once a rig arrives ($10-$30 million) drilling a single well may cost as $30-million these are by no means difficulties in today's exploration climate.

Estimates are that production may start in 10 years and then reach 500,000-bbl/day. Presumably that will mark a first phase.