Tuesday, August 07, 2012

Did the US just insert inself into the Falklands drama?

Thanks for the info Doug.

Check out this article from DefenseManagement.  It seems like the US has skin in the game when it comes to the Falkland Islands.
A US-based energy firm is to join the search for oil in waters around the Falkland Islands after signing an exploration deal with Falklands Oil and Gas Limited (FOGL).

Noble Energy will invest between $180m and $230m in gaining a 35 per cent share of the exploration licences to the south and east of the Falkland Islands in a move which is being described as signalling a possible shift in America's stated neutrality over the islands' sovereignty.

The licences cover an area of some 40,000 square kilometres, and the deal follows news that Venezuelan state oil company PDVSA is in talks with YPF, now 51 per cent controlled by Argentina, over exploration in waters near the islands.

Edison Investment Research's Ian McLelland told The Daily Telegraph that some companies with "direct exposure" to, or investments in, Latin America had avoided the Falklands because of their proximity to South America and the ongoing dispute between the UK and Argentina.

"The fact that a US company like Noble is entering the region is therefore of significance," he said.

Argentina is claiming sovereignty over the islands and demanding the UK engage in talks at the United Nations, something the British government has refused to do.

This year marks the 30th anniversary of the Falklands War, when Argentina invaded the islands only to be repelled by a British task force several months later.

During the war, America was said to have adopted a neutral position, but in June it was reported that US President Ronald Reagan had cleared a US carrier to assist the UK in taking back the islands if necessary.

FOGL chief executive Tim Bushell said that the choice of an American firm had not been "politically motivated", but that Noble would have sought US State Department advice before investing in the Falklands.
Now isn't that interesting.

Besides the UK being an important ally, we're now business partners.  We have as much at stake with the possible oil revenues off the coast as the British do.

Ain't capitalism grand?

5 comments :

  1. An interesting development. I'm actually glad if this does signal a subtle shift for the US. When you see that bitch Hillary Clinton basically supporting Argentina's position saying we should go to the UN it pisses me off after Britain's support as an ally, not to mention the blood spilled.

    But hey if there is one thing that'll make the US take a side its oil and money right? :P

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  2. your'e right but this is a bit deeper. if it were only about oil and money then we should be coozing up to Brazil a bit more and they're fully in Argentina's camp. i think this has a bit more to do with the relationship.

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  3. Is it just me or is this turning into a very much Cold War style proxy war? Since China has stated it supports the Argentine claim.

    http://en.mercopress.com/2011/12/26/china-and-argentina-ratify-crossed-support-for-taiwan-and-falklands-claims

    In the Blue corner we have: UK, support from Chile (maybe) & US(Proxy)
    In the Red corner we have: Argentina, support from Venezuela (maybe) & China (Proxy)

    Looks like Cold War 2.0 is just around the corner.

    Doug

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    Replies
    1. China has huge imports of Soya bean from Argentina, something like 60%, seems like China can't afford not to support Argentina over this. Argentina seems to totally miss this opportunity and is imposing huge taxes on imports, even from China...Cristina Kirchner is doing her best to test all her 'allies'

      As for Hillary, most americans couldnt point to south america never mind understand the Falklands topic, she no doubt hopes it will go unnoticed by most of the world, our tiny UK's complaints will go into thin air.

      Let's hope as said, money and oil will make the world take notice.

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  4. TMM
    Oh we can but hope china makes a mistake on that scale!
    The Falklands is a damn near perfect "air sea battle"

    China cant supply rifles, explosives and detonators for that war, its a war of jets and ships and technology.

    J10's against F35b's, baby seals comes to mind....
    Astutes against Shangs or Yuans? That have to cross the Pacific or the Indian Ocean to even reach the warzone?
    Both India and the US have a vested interest in China being bled dry.
    Thats not even clubbing baby seals.


    Sol
    East and South is about as "safe" (IE away from any possible shooting) as the area gets, but yeah, you dont invest in a war zone unless you are investing in the winner, or you have reached agreements with both sides.
    Given Argentinas recent spate of ripping up agreements with foreigners....

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