The Falklanders: Sheiks of the South Atlantic?

Early evening chatter in the Victory bar in Port Stanley used to touch on squid hauls and cruise liner schedules. Now, as the locals sip on imported pints of British beer, a far more lucrative proposition is grabbing their attention: oil.

According to the latest seismic surveys, the Falkland Islands are sitting on an estimated 18bn barrels. Prospecting companies operating on the islands say they plan to start drilling later this year. With an already affluent population of about 3,000, Falklanders are anticipating a windfall that could make them one of the richest populations on the planet.

But the Falklanders aren't quite the oil barons of South America yet. Naturally, first it needs to be proved if there is really oil to be found. The oil prospectors are talkling it up, as you'd expect them to. But they've not even got round to drilling yet. With oil prices plummeting, the margins are growing tighter too.

Then of course there's the Argentine reaction to think about. If anything is going to spark another war between these two old foes, it's billions of barrels of black gold turning up underneath the Falklands.  

To get a taste of what could be to come, the Argentine daily Clarin today ran a heated piece after my piece appeared in The Guardian. It was pointed out that the oil companies had the temerity to begin exploration without going cap in hand to the Argentine government for permission.

News of the Falklanders becoming the Sheiks of the South Atlantic might just have to wait though. It seems that Prince William's time to do the honourable thing has arrived. The heir to the throne is due to follow in his uncle's footsteps and defend Britain's fair isle.

Strictly speaking, the Falklands is only an 'overseas territory'. But then that doesn't sound quite worth getting out of bed for. Tally ho William. Do granny proud.