If you think nationalism is dead, all you need to do is tune in the Winter Olympics to see the flag waving to realize it's not. It's not dead in Argentina either, judging from that country's reaction to a British oil company that is drilling in disputed waters off the Falkland Islands at least 500 miles from the Argentine coast. The rig is owned and operated by Houston-based Diamond Offshore.
However, the flare-up over the drilling isn't just about national pride. It's also about economics. The Argentine government, which has been busy destroying internal oil and gas development with onerous taxation, desperately wants to get a piece of what may be a very large petroleum pie off the Falklands, which it calls Las Malvinas.
Here is some background: Tensions increased between Argentina and the United Kingdom in recent weeks after UK-based Desire Petroleum PLC, began drilling an exploration well in the North Falkland basin, about 60 miles north of the Falklands archipelago, in late February. The well is the first of about a dozen exploratory wells planned by Desire to the north and east of the islands in the frigid, windswept South Atlantic Ocean. Two other companies, Rockhopper Exploration and Arcadia Petroleum, have farmed into drilling plans in the area.
The Falkland Islands have been under British rule since 1833, but Argentina claims sovereignty over the islands. The basis for their claim is unclear since the Falklands government, which represents the 2,500 inhabitants, has stated repeatedly that it does not want Argentine domination. Nearly all the people who live in the Falklands are of British ancestry, and the UK retains a military presence on the islands.
Sheep ranching and fishing have long been mainstays of the Falklands' economy, such as it is. The islanders have expressed hope that hydrocarbons will be found in commercial quantities and this will help them reach a level of prosperity they have never before enjoyed.
In 1982, the military dictatorship that ruled Argentina invaded the Falklands in an attempt to assert their claim to the islands. This resulted in a seven-week war in which Britain prevailed. The war lasted 74 days, and resulted in the deaths of 255 British and 649 Argentine soldiers, sailors, and airmen, and three civilian Falklanders. The brutal military junta collapsed after the decisive defeat by British forces, and a democratically elected government was eventually restored in Argentina. Relations with Britain gradually improved, and normal relations between the two countries were restored in 1990.
Fast forward to 2010. The current president of Argentina, Cristina Fernandez de Kirchner, is deeply unpopular at home because of rising inflation and evidence that she and her husband have grown rich while in office. To improve her standing, she is appealing to Argentine nationalism vis-à-vis the Falklands/Malvinas in an effort to repair her fading popularity. She denies that her government has any plans to seize control of the islands. However, Argentina has detained at least one ship that the government claims was carrying supplies destined for the islands. They have asked their neighbors, especially Chile and Brazil, for help in enforcing this would-be embargo.
Venezuelan president Hugo Chavez, who loves to rattle sabers, has come to the rescue riding his white horse. If hostilities were to occur, which is highly doubtful given the thrashing the Argentine military suffered nearly 30 years ago at the hands of the Brits, Venezuela has vowed to come to Argentina's aid.
"If conflict breaks out, be sure Argentina will not be alone like it was back [in 1982]," said Chavez.
One expects this sort of posturing from Chavez. Unfortunately, the governments of Chile and Brazil seem to be backing Argentina in the dispute. Whether or not they go along with President Fernandez's embargo remains to be seen.
Argentina's claim to the Falklands has about as much validity as a demand from the Russians that the US return Alaska. What is the basis for the claim? It can't be geography. The islands Argentina wants (Falklands, South Georgia, and the Sandwich Islands) are 400 to 1,200 miles from the Argentine coastline. It can't be freeing an oppressed population because the inhabitants have said many times they don't want Argentine control.
This is all about an Argentine government that is trying to bolster its popularity with a little flag waving. Fernandez also hopes she can somehow negotiate a share in the revenues that eventually may be generated if the petroleum basin is as plentiful as some have estimated (perhaps 3.5 billion barrels of oil and 9 trillion cubic feet of gas).
We hope the British government does not cave in to Argentina's spurious claim. OGFJ
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