British oil dispute with Argentina deepens

A new dispute is escalating in the South Atlantic between Argentina and Britain over the disputed Falkland Islands. This time, it is about black gold – oil. So far, it is only a diplomatic war of words between the two countries. The trigger for the latest bout of words was a ship called Thor Leader. Its cargo was pipes bound for the Falkland Islands where an oil drilling platform is about to start drilling for oil.

Argentina has accused Britain of illegally promoting drilling operations. Geologists have estimated there could be up to 60 billion barrels of high grade oil in the 200 square mile seabed zone surrounding the Falkland’s. That could make the Falklands one of the world’s largest oil reserves, comparable with the North Sea, which so far has produced about 40 billion barrels of oil.