European Geostrategy | 1:19, 7 March 2010
By James Rogers
Other than as a naval station during the first half of the twentieth century, the Falkland Islands were largely unknown before the War of 1982. Wet and windswept, and without any native population, the Islands were discovered by Europeans in the sixteenth century. They were then claimed and ruled by France, Spain, Argentina and the United Kingdom. But that is all history; what matters now is that they have been British since 1833, bar for a few sad weeks in 1982 when the Argentine junta decided to invade them.
London sent a naval squadron to eject the occupying force, which resulted in a swift and decisive British victory. Since then, the Islands’ prosperity has increased substantially – standards of living are now akin to those in Southern England. Whereas before their mainstay was sheep farming, the Falklands have today become a large centre for pastoral farming, fishing and tourism. Port Stanley, the Islands’ capital, has doubled in size since 1982 to include almost every modern urban facility bar a university, and receives tens of thousands of tourists each year from passing cruise liners. London has also bolstered the Islands’ defences considerably: they now sustain a vast military station, including an aerodrome (RAF Mount Pleasant) and a naval facility (Mare Harbour). Royal Air Force Eurofighter Typhoons and Royal Navy gunboats are on constant patrol to protect the Islands’ sovereignty.
Buenos Aires has made sporadic claims on the Islands, normally coterminous with periods of economic or political difficulty in Argentina. London has normally just rebuffed or ignored the Argentine behaviour. Recently, however, a British oil company was granted permission to begin surveying a basin to the north of the Islands, to much Argentine bluster. Twelve years ago, in 1998, Shell also conducted a number of geological surveys in the area to see whether there was oil under the seabed. The findings were inconclusive, however, but oil was thought to exist. With the price of oil at an all-time-low in 1998, it was not deemed commercially viable to begin further attempts at extraction.
Yet British eyes are looking south again, especially now that oil costs over €50 per barrel; that reserves in the North Sea are declining; and that advances in undersea mining have occurred. It has been estimated, albeit roughly, that there could be as much as sixty billion barrels of oil under and around the Falkland Islands, meaning they could become the second largest known oil field on the planet. Substantial gas fields could exist too. Argentina, currently under the unpopular President Cristina Fernández de Kirchner, is obviously anxious to claim the prize, and has been stepping up pressure on the British to surrender their sovereignty over the Falklands once and for all.
The Argentines have rallied the South American nations to their side, including Chile and Brazil. Even Venezuela’s crazy Hugo Chavez tried to get in on the act. Never missing an opportunity to spout some anti-imperialist claptrap, he denounced the British in one of his amusing and long-winded television broadcasts. But such capers aside, the Argentines have sought to undermine Washington’s support for Britain by threatening to work with other South American countries to form a new regional organisation that deliberately excludes the United States and Canada. This would not suit American interests and Washington has tried to keep its distance, describing the issue as a bilateral problem between Buenos Aires and London exclusively. Perhaps in an attempt to douse Argentine anger, Hillary Clinton, the American foreign secretary, even implied that British sovereignty was not necessarily absolute – a move the British did not appreciate.
A MAP SHOWING THE GEOSTRATEGIC SIGNIFICANCE OF THE FALKLAND ISLANDS

Here comes the crunch: how and why does this all matter to the European Union? Well, apart from the fact that the Falkland Islands are populated by British – and therefore European – citizens, whose right to self-determination must be resolutely upheld, British sovereignty is important for three reasons:
- Any energy reserves or other natural resources found in the South Atlantic could almost certainly be shipped back to the European Union, reducing our collective dependence on unruly or unstable foreign suppliers (e.g. Russia and the Middle East). Given that North Sea reserves, which were around fifty billion barrels, have powered-up much of the European economy for nearly four decades, the possible sixty billion barrels under the Falklands could keep Europeans going for just as long – and this fact becomes even more important should conflicts break out over key minerals in the future.
- The Falklands are geostrategically significant due to their particular location. Just five hundred kilometres from the Strait of Magellan and Drake’s Passage, they give their owner total command over the lower part of the South Atlantic (see map, above). Other than the Panama Canal, these two ‘strategic chokepoints’ are the only direct links between the Atlantic and Pacific oceans.
- And crucially, given that parts of the Antarctic continent could eventually be uncovered or made more habitable with the onset and acceleration of climate change – revealing potentially enormous mineral wealth – British possession of the Falkland Islands makes any future European territorial claim over parts of the southern hemisphere more likely and legitimate. Equally, the Islands are actually quite large (roughly half the size of Belgium), so could support the infrastructure necessary to support a connexion with any potential European resource extraction facilities in the Antarctic.
So those who dismiss the Falkland Islands as an anachronism are mistaken. The Islands’ geopolitical significance to our economy – the European Union’s economy – could only just be about to begin. No European Union Member State should do anything to harm the British claim; and Argentina should be told politely but firmly by Europeans to mind its own business.

