Could the Falkland Islands be David Cameron's saviour?
This week's news of a potentially enormous oil discovery in waters just off the Falkland Islands could turn out to be David Cameron's "North Sea oil boom". While it will be some time before oil production is in place, there's no doubt that potentially there could be billions of pounds of taxation income awaiting the UK authorities.
As oil exploration continues in and around the Falkland Islands it is highly likely that we will see further discoveries announced in the short to medium term. This is an area of the world which many people believe is perfect for the storage of oil beneath the sea and this week's announcement of a find, which could total potentially 242 million barrels of oil, has caught the headlines. However, there are many reservations with regards to oil exploration around the Falkland Islands because the Argentinian authorities have for many years staked a claim to this area of the world and in fact the island itself.
While the Argentinian authorities have promised there will be no military activity in relation to the Falkland Islands there's no doubt that political and diplomatic pressure is building on the UK government. However, the UK government has never given way on the sovereignty of the Falkland Islands in the past and is unlikely to change his stance in the future.
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