Economy of the Falkland Islands

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Economy of the Falkland Islands

Currency Falkland pound

Fixed exchange rates 1 Falkland pound = 100 pence[1]

Fiscal year 1 April–31 March

Trade organisations N/A

Statistics

GDP $193.28 million (2017)[2]

GDP rank 222nd (PPP, 2007)

GDP per capita PPP: $77,692 (2013 est.)

GDP by sector agriculture (95%), Industry (NA%), Services (NA%)(1996)

Inflation (CPI) 1.2% (CPI, 2003)

Labour force 5,246 (2006)

Labour force by agriculture 95% (mostly sheepherding and fishing), industry

occupation
& services 5% (1996)

Unemployment 4.1% (2010)

Main industries fish and wool processing; tourism

External

Exports $125 million (2004 est.)

Export goods wool, hides, meat, squid

 Main export partners Spain 77.4%, UK 9.4%, US 4.9% (2004)

Imports $90 million (2004 est.)

Import goods fuel, food and drink, building materials, clothing

Main import partners UK 63.2%, Spain 30.3%, France 3.6% (2004)

Public finances

Revenues $67.1 million (FY2009 / 2010)

Expenses $75.3 million (FY2009 / 2010)

Economic aid $0 (1997 est.)

Main data source: CIA World Fact Book

All values, unless otherwise stated, are in US dollars.

The economy of the Falkland Islands, which first involved sealing, whaling and
provisioning ships, became heavily dependent on sheep farming from the 1870s to
1980. It then diversified and now has income from tourism, commercial fishing, and
servicing the fishing industry as well as agriculture. The Falkland Islands use
the Falkland pound, which is backed by the British pound.

Contents

 1Historical development
 2Economic overview
 3Banking
 4Agriculture
 5Fishing
o 5.1Fishing grounds
o 5.2Fish stocks
 5.2.1Squid
 5.2.2Finfish
o 5.3License quota policy and revenue
o 5.4International cooperation
o 5.5Catch statistics
 6Tourism
 7Energy and minerals
o 7.1Petroleum exploration
 7.1.1North Falklands basin
 7.1.2East and south Falklands fields
 o 7.2Renewable energy sources
 8Transport in the Falkland Islands
 9Philately and numismatics
 10See also
 11References
 12External links

Historical development[edit]

A squid trawler, and a cruise ship in Port William representing two trends in recent economic development

During the 19th century, the supply and maintenance depot for ships
at Stanley developed into a port serving ships rounding Cape Horn. There was also
trade in cow hides from the wild descendants of cattle introduced by French settlers in
the late 18th century. Sheep farming was then introduced, taking over from the cattle
trade in the 1870s and becoming self-supporting by 1885. The islands also provided a
base for whaling and sealing, with factories being built on East Falkland and South
Georgia Island, but these industries ended.
By the Falklands War of 1982 sheep farming was the islands' only industry [3] and their
economic viability was in doubt, but after the war there was a new commitment from
the Government of the United Kingdom. The Falkland Islands Development
Corporation was formed in mid 1984 and in its annual report at the end of that year it set
out to increase employment opportunities by encouraging diversification, to increase
population levels through selective immigration, to aim for long-term self-sufficiency and
to improve community facilities. To achieve this, the Corporation identified agricultural
improvements, tourism, self-sufficiency in energy, development of the industrial and
service sector, fisheries, and land subdivision as areas to tackle.
The largest company in the islands used to be the Falkland Islands Company (FIC), a
publicly quoted company on the London Stock Exchange. The company was
responsible for the majority of the economic activity on the islands, though its farms
were sold in 1991 to the Falkland Islands Government. The company now operates
several retail outlets in Stanley and is involved in port services and shipping operations.
By 2002 the Falklands' economy was booming, with income from tourism and the sale
of squid fishing licences as well as from indigenous fishing companies with locally
registered boats. Fishing boats visit the islands from Spain, Korea, Taiwan and Japan,
and obtain supplies and services from the islands.[3] An islander told the BBC that "we
were the luckiest people that was ever mixed up in a war", [4] and British diplomats joked
that the Falklands should have a monument to Leopoldo Galtieri, the Argentinean
dictator who invaded the islands.[5] In 2007, Argentina withdrew[6] from a 1995
agreement[7] that set terms for exploitation of offshore resources. It is thought that there
might be up to 60 billion barrels (9.5 km3) of oil under the sea bed surrounding the
islands.[8] Desire Petroleum and Rockhopper Exploration began drilling for oil in the
vicinity of the Falklands in the first half of 2010, sparking strong protest from the
Argentine government. Diplomatic disputes with Argentina disrupted tourism slightly in
2004. Buenos Aires refused permission for charter flights from Chile that served cruise
ships to fly over Argentina to reach the islands. [citation needed]

Economic overview[edit]

Graphical depiction of Falkland Islands's product exports in 28 color-coded categories.

The Falkland Islands have a GDP of $164.5 million, and a per capita GDP of $70,800
(2015 estimate) compared with the United Kingdom GDP per capita of $35,200 (2009
estimate).[9] The contributors to the GDP by sector (2010 forecast) are: [10]

 Fisheries – 52.5%
 Government (including health and education) – 14.0%
 Communications, Finance and Business services – 11.4%
 Hospitality & Transport – 7.7%
 Construction – 6.6%
 Housing and other services – 3.2%
 Mining. Quarrying & Manufacturing – 2.1%
 Agriculture – 1.6%
 Utilities – 0.9%
In the 2009/10 financial year, the government revenue was £42.4 million of which
£14.5 million came from fishery licences and services and £10.5 million from taxes.
During the same period the government expenditure was £47.6 million.[11]
Other economic indicators include:
Electricity – production: 19 million kWh (2016 est.)[12]
Electricity – production by source: (2016 est.)

 Fossil fuels: 74%

 Non-hydro renewables: 26%
Electricity – consumption: 17.67 million kWh (2016 est.)
Installed nameplate capacity of electric generation
12,100 kW (2016 est.)

Banking[edit]
The Falkland Islands do not have a central bank but the Standard Chartered Bank has a
single branch in Stanley that offers retail, commercial and wholesale banking facilities. [13]
The constitution requires the governor of the islands to seek the approval of a British
Secretary of State before assenting to any bill that affects "the currency of the Falkland
Islands or relating to the issue of banknotes" or any bill that establishes "any banking
association or altering the constitution, rights or duties of any such association".[14] These
restrictions effectively give the British Government the ability to prevent the island's
government from declaring the islands to be a tax haven or from establishing a central
bank.

Agriculture[edit]
Farmland accounts for a little over 80% of the Falklands land area [15] and a sheep
appears on the islands' coat of arms, but agriculture is now less than 2% of the
economy.[10] As of 2007, 670,000 sheep resided on the islands; [16] a 2011 report
estimated the sheep population at over one million. [17] Roughly 40% of the national flock
are on West Falkland and 60% on East Falkland. [15] The base flock
are Corriedale and Polwarth breeds with Dohne Merino, South African Meat
Merinos, Afrinos and other breeds having been introduced to improve the fineness of
wool and meat characteristics.[18] The wool price suffered a slump in 2005/6 and a peak
in 2008. Since 2003 the relative premium commanded by higher quality wool has
increased with coarser wool missing out on the high prices in 2008. A summary of the
prices for the period 2002 to 2010, which are often dictated by Australian exchange rate
and weather conditions[19] is shown below:[20]

Fibre Minimum price

Maximum price (p/kg)
diameter (p/kg)

32 microns 130 (2007) 210 (2003)

28 microns 180 (2006) 280 (2003)

24 microns 255 (2006) 530 (2010)

 20 microns 290 (2005) 590 (2010)

Although the production of wool is spread across the islands, the breeding of animals
for slaughter is concentrated on East Falkland where the EU accredited Send Bay
abattoir is situated.[21] An additional cost borne by producers on West Falklands is the
fare charged for crossing the Falklands Sound. As of 2010, the ferry company making
the crossing charged commercial vehicles £30 per metre for a single trip plus £2 per
head of sheep. Wool on the other hand is charged "£45 per tonne delivered to Stanley".
[22]

An increasing number of farmers are supplying lamb to the Falkland Islands Meat
Company. The abattoir received export accreditation in December 2002 and began
exporting meat in May 2003.[23] The number of farms supplying lambs increased from 6
in 2003 to 27 in 2007 while the number of lambs sent to the abattoir rose from 2600 to
11,963 in the same period.[24]
Selected statistics for the year 2008/9 relating to sheep farming are given below:

Area used for Wool Greasy wool

Number Sheep Average
Region sheep clipped yield
of sheep slaughtered fleece (kg)
(hectares) (kg) (kg/hectare)

East Falkland 612,935 292,917 22,023 923,632 3.69 1.86

West Falkland 425,592 182,741 7,839 602,618 3.60 1.54

Islands 85,458 28,962 4,197 110,595 4.55 1.69

Total 1,123,985 504,620 34,059 1,636,845 3.95 1.70

There are also a small number of cows, pigs and horses on the islands that are reared
for local use.[15]

Fishing[edit]
Main article: Fishing in the Falkland Islands
Metal icon depicting St Nicholas, the patron saint of fishermen. The icon is located at the premises of the
Falklands Legislative Assembly at Gilbert House in Stanley, Falkland Islands

Map of the Falkland Islands economic zone in relation to her neighbours

Fishing is the largest part of the economy.[16] Although Lord Shackleton's Report (1982)
recommended the setting up of a 200-nautical-mile (370 km; 230 mi) fisheries limit
which gave an impetus to the fishing industry, the report did not go into much detail
regarding the expansion of the industry. [25] The Falkland Islands Development
Corporation which formed as a result of the Shackleton Report provided the impetus for
the Falkland Islands to exploit their marine environment.
Fishing grounds[edit]
The Falkland Islands' fishing waters form part of the 2.7 million square kilometre
Patagonian Shelf large marine ecosystem and are located on a spur from the
Patagonian Continental Shelf.[26] Most of the fishing takes place in water up to 200
metres (660 ft) deep on this spur or on the Burdwood Bank - another spur lying on
an undersea ridge to the south of the Falkland Islands and separated from the islands
by a deep channel known as the Falklands Trough. At its highest point, the Burdwood
Bank is 46 metres (151 ft) below sea level.
The principal ocean currents in the Falkland Island waters are the West Wind Drift, a
cold current from the Southern Pacific Ocean that flows westwards to the south of the
Burdwood Bank[27] and the north flowing cold Falklands current, an offshoot of the West
Wind Drift that curls around the east of Falklands Plateau and along the Falklands and
Patagonian escarpments.[28] It joins the saltier warm Brazil Current in the vicinity of the
mouth of the Río de la Plata to form the South Atlantic Current.[29][30][31]
In 1986 the Falklands opened up their fishing industry to outsiders with the declaration
of a 160-nautical-mile (300 km; 180 mi) radius Fisheries Conservation & Management
Zone centered on the Falkland Sound. This zone was later to become the Falklands
Inner Conservation Zone (FICZ). Apart from the Falkland Trough, this zone lies within
the continental shelf. In 1990 the Falklands Outer Conservation Zone (FOCZ) was
declared – a zone that lay between the perimeter of the FICZ and the Falklands 200-
nautical-mile economic zone boundary. The FOCZ includes part of the Burdwood Bank,
borders on the confines of the continental shelf and includes part of the Falklands
Escarpment - a 2,000-metre (6,600 ft) undersea escarpment running east–west.
At the same time that the FOCZ was declared, the Argentine declared its 200-nautical-
mile Exclusive Economic Zone (EEZ) and together with the British Government (acting
on behalf of the Falkland Islands) set up the South Atlantic Fisheries Commission
(SAFC) to coordinate the management of fishing stocks in the area. [32]
Fish stocks[edit]
Tonne / ton conversion
1 tonne = 1000 kg
1 tonne = 0.984 long tons
1 tonne = 1.102 short tons
1 tonne = 2204 lbs

Most of the fish that are harvested in the Falkland Islands waters are either squid or
finfish. Other types of fish form an insignificant part of the Falkland Islands' catch. A
significant number of the fish that are taken are migratory with the spawning grounds
and feeding grounds of some species being highly dependent on the water temperature.
Squid[edit]
The Illex squid (Illex argentinus) which typically has a mantle length of 20 to 28
centimetres (8 to 11 in) and a weight of 150 to 500 grams (5 to 18 oz) is the most
important fish to the Falklands economy followed by its smaller cousin, the Patagonian
squid (Doryteuthis gahi) which typically has a mantle length of 10 to 15 centimetres (4 to
6 in) and a weight of 75 to 150 grams (3 to 5 oz).[33] Neither species was discovered in
substantial numbers near the Falklands until the late 1980s. [16]
The lllex squid has its spawning grounds at the mouth of the Río de la Plata and a
migratory pattern that takes it southwards along the Patagonian Shelf as far as the FICZ
to its feeding grounds. It then returns to its spawning grounds via a route that lies off the
continental shelf.[34] In some years, such as 2007, it enters the FICZ with a resultant
good harvest, it other years, such as 2009, it does not migrate as far south as the FICZ
at all.[33] The catch for the 2010 season in the Falklands recovered to 12105 tonnes, but
still the fourth lowest since the beginning of the licensing system. This has been
attributed to the lower than usual sea temperatures during the feeding season in
February–May.[35]
The Patagonian squid, unlike the Illex, remain in Falkland Island waters all year and are
concentrated in the Loloigo box—an area within the Falklands Plateau to the east and
south-east of the islands and are harvested during both the austral spring and autumn.
Finfish[edit]
In the 1970s many fin fish, particularly the rock cod, a high volume low value fish [36] were
exploited to near-extinction. The levels of rock cod taken in the whole of the South
Atlantic dropped by 99.3% in the space of two years between the 1969–70 and 1971–
72 seasons.[37][38] while the patagonian rockcod was fished to near-extinction in the Shag
Rock area.[39] This resulted in a ban on fishing which was lifted in 2005. Following the
collapse of the Illex industry in 2008/9, the rock cod has become, by weight, the most
heavily harvested species in the area.
In 2006, a Spanish vessel on an exploratory trawl found commercial quantities of
grenadiers (Macrourus spp., Coelorhynchus spp.) to the south and east of the Falkland
Islands at depths between 750 and 830 metres (2,460 and 2,720 ft) depths in the
eastern part of FICZ. It has been estimated that this species needs a stock biomass of
40000 tonnes to produce a sustainable harvest of 3000 tonnes per annum and is now
reflected as a separate entry in the tables below. [40]
License quota policy and revenue[edit]
With the establishment of the FICZ, the Falklands Fisheries Department issued licences
that enable foreign vessels to fish in Falklands waters. Initially there were seven classes
of licence, but as of the 2009 season, this was increased to ten classes of licence. Each
class of licence has its own characteristics – species or combination of species that may
be taken, net sizes that may be used and seasons when the licence is valid. The main
fishing areas are in waters that are up to 200 metres (660 ft) deep with principal
concentrations close to the confluence of the FOCZ, FICZ and EEZ to the north west of
the Islands and also on the Burwood Bank – a shallow water to the south of the Islands.
[33]
 Initially licences were issued on a total allowable effort (TAE) but in 2007, the
toothfish longline fishery became the first fishery in the Falkland Islands to be issued on
a total allowable catch (TAC) basis.[33] Apart from the Islander's own fleet, the principal
fishing fleets come from Spain, Korea and Taiwan. When the Falkland Islands first
opened up her waters, the Polish fishing fleet had a presence as did the Japanese, but
the Poles stopped fishing in the area in the mid-1990s and the Japanese in the middle
of the first decade of the twenty-first century. [33] By 2002 the license revenue was so
great that the island government had no debt and had built up more than £80 million in
savings.[3]
Since 1993, the principal licence classes have been:

 A licence – Permits the taking of unrestricted fin fish during the first season
 B licence – Permits the taking of Illex squid.
 X licence – Permits the taking of Patagonian squid during the second season
(Loligo).
 Y licence – Permits the taking of unrestricted fin fish during the second season (The
Southern blue whitting and the Hoki in particular are classed as restricted finship).
Revenue from licence fees (£ millions)[33]

1994–
1989–1993 1999–2003 2004–2008 Average
Licence type 1998 2009
(Average) (Average) (Average) 1989–2009
(Average)

B 19.91 12.45 13.60 4.09 0.00 11.92

X 3.77 3.58 3.67 1.70 1.94 3.12

Y 0.80 2.08 1.80 3.07 4.24 2.05

Others 1.70 3.67 4.87 4.65 4.67 3.76

10.8
Total 26.18 21.78 23.93 13.51 20.85
5

International cooperation[edit]
The Antarctic Treaty was signed by both the United Kingdom and Argentina in 1959. In
its wake, the Convention for the Conservation of Antarctic Marine Living Resources
(CCAMLR), a treaty signed by 24 nations and covering the area that includes most of
the Falkland Islands waters, came into force in 1982, [41] having been signed by the
United Kingdom on 31 August 1981 and Argentina on 28 May 1982. [42] The convention
covers Southern Ocean ecosystem which is generally accepted as being south of
approximately 50° to 55°S. The CCAMLR provides a forum for exchanging information
regarding marine life in the Antarctic region and has the authority to ban the harvesting
of certain type of fish and also to ban or put restrictions on the use of certain methods of
harvesting. The convention requires that member states who are not parties to the
Antarctic Treaty accept certain provisions of that treaty. [43]
The South Atlantic Fisheries Commission (SAFC) was set up in 1990 between the
Argentine and the United Kingdom (acting on behalf of the Falkland Islands) to
exchange information and to coordinate fishing activities in the South Atlantic. One of
their prime activities was the monitoring of the Illex spawning stock biomass (SSB). If
the SSB drops below a threshold of 40000 tonnes the SAFC recommend will early
closure of the fishing season.[44] Since 2005 the SAFC has been largely moribund as the
Argentine Government reduced co-operation, declining to continue the routine joint
meeting process and suspending joint scientific activities. [44] She has since extended her
claim to all of the Falkland Island waters. [45]
Catch statistics[edit]
The table below shows the average catch in tonnes of various species (as categorised
by FIFD - Falkland Island Fishing Department) for successive five-year periods. [33]

1989– 1994– 1999– 2004–

Common Scientific Seaso 1993 1998 2003 2008
Type 2009
Name name n (Average (Average (Average (Average
) ) ) )

Salilota Feb–
Red cod Fin 4350 6564 4932 3598 5079
australis Nov

Southern
Micromesistius Sep–
blue Fin 45053 31834 24675 20309 10395
australis Mar
whiting

Argentine
Mar–
shortfin Illex argentinus Squid 161277 89120 144665 72656 44
Jun
squid

Genypterus Feb–
Kingklip Fin 1274 1635 1720 2483 3395
blacodes Nov

Feb–
Patagonian Apr
Loligo gahi Squid 78238 60646 44811 44595 31475
squid Jul–
Sep

Sevenstar Martialia
Squid 36 2003 52 5 0
flying squid hyadesii

Argentine
hake Merluccius
Southern hubbsi Mar– 7763 13051
Fin 8448 2003 2583
hake (or Merluccius Oct 690 0
austral australis
hake)[46]

Skates and Skate & Apr–

Rajidae 5361 3769 4060 5009 5865
rays ray Dec
 Patagonian Dissostichus All
Fin 546 1806 2112 1640 1419
toothfish eleginoides year

Patagonian Macruronus Feb–

Fin 9612 14973 21770 18992 23170
grenadier magellanicus Nov

Grenadier[47] Macrouridae Fin 787 958

Patagonotothe
Patagonian
n brevicauda Fin 46986 58149
rockcod[47]
brevicauda

Zygochlamys Mollus
Scallop 273 764 13
patagonica c

All
Other 2285 1662 2749 3706 246
year

15325
Total 316479 215632 254284 203182
8

Tourism[edit]
Tourism is the second-largest part of the economy. In 1982, an average of only 500
tourists visited the Falklands per annum but by 2007, this figure had grown to
55,000[48] and the Falkland Islands Tourist Board[49] hired its first tourism director that
year.[16] In 2010, the transport and hospitality sector was expected to contribute £7.8
million or 7.7% of the island's GDP.[10] Tourism forms a significant part of this figure with
land-based visitors expected to contribute £2.7 million to the Islands' economy in 2010.
[50]
 The islands have become a regular port of call for the growing market of cruise
ships to Antarctica and elsewhere in the South Atlantic.[3] Attractions include the scenery
and wildlife conservation including 1,000,000 penguins,[16] seabirds, seals, and sea lions,
as well as visits to battlefields, golf, fishing and wreck diving. In addition to
accommodation in Stanley, there are tourist lodges at Port Howard, Darwin, Pebble
Island, Carcass Island, and Sea Lion Island. Self-catering accommodation at holiday
cottages on island farms. The total contribution of tourism to the Islands' is expected to
reach £5.4 million in 2010.[50]
During the 2008–2009 season almost 69,000 tourists visited the Falklands, with 62,600
of these arriving onboard cruise or expedition vessels. [49] Since cruise liners have their
own accommodation, substantial numbers of tourists can be accommodated at once,
such as an occasion in 2005 when 3000 tourists visited the islands in one day. [51] In 2013
passengers from cruise ships faced protests in Latin American ports over the British
military presence.[52] The cruise industry is expecting passenger numbers to decline from
39,500 in 2013–2014 to 34,000 for 2014–2015. However land tourism is increasing
which is offsetting the effect of a decrease in cruise tourism. [53]
Other sources of "tourist" revenue include spending by the British military personnel
based on the islands, by business travellers and by pilgrims to the graves of both British
and Argentine soldiers who fell in the 1982 Falklands War. Although there is still a
resentment in the Islands to the Argentine occupation, the Falkland Islands Government
continues "to respect the need for Argentine veterans of the 1982 conflict and their next
of kin to visit the battlefield sites and the cemetery at Darwin". Such visits are arranged
in conjunction with LAN Airlines (Chile) who, on such occasions, use larger aircraft than
normal for the weekly flights.[54]

Energy and minerals[edit]

Petroleum exploration[edit]
Four sedimentary basins that could potentially contain hydrocarbons have been
identified in the Falkland Island waters.[55] They are:

 North Falkland Basin which is located to the north of the islands.

 Falklands Plateau Basin which is located to the east of the East Falkland.
 South Falklands Basin which lies to the south-east of the islands and extends up
to the Falklands Trough.
 Malvinas Basin which lies to the south-west of West Falkland, between that island
and Tierra del Fuego at the head of the Falklands Trough. Part of this basin lies in
Argentine waters.
The latter three basins are part of a larger contiguous formation.
An agreement signed in 1995 with Argentina had set the terms for exploitation of
offshore resources including large oil reserves[56] as it was thought that there might be up
to 60 billion barrels (9.5 km3) of oil under the sea bed surrounding the islands.
[57]
 However, in 2007 Argentina unilaterally withdrew from the agreement. [58] In
response, Falkland Oil & Gas has signed an agreement with BHP Billiton to investigate
the potential exploitation of oil reserves.[59] Climatic conditions of the southern seas mean
that exploitation will be a difficult task, though economically viable, and the
continuing Falkland Islands sovereignty dispute with Argentina is hampering progress.[60]
Some 2012 exploration results have indicated that taxation on oil revenues, even
though they will be amongst the lowest in the world, are expected to more than
double[clarification needed] the country's revenue.[61]
North Falklands basin[edit]
In February 2010, exploratory drilling for oil was begun by Desire Petroleum,[62] but the
results from the first test well were disappointing.[63] Two months later, on 6 May 2010,
when Rockhopper Exploration announced that "it may have struck oil",[64] Argentina's
Foreign Minister warned that his country would take all possible lawful steps to impede
British oil exploration and production there.[65] On 17 September 2010, Rockhopper
Exploration published the results of the borehole analysis – the well was drilled in water
451 m deep and a flow test showed that a payable oil column of 53 m was capable of
producing over 2,000 barrels per day (320 m3/d).[66] In February 2011 Rockhopper
Exploration commenced an appraisal programme of the Sea-Lion discovery. An update
of the first appraisal drill was released on Monday 21 March 2011 indicating a significant
reservoir package with a downhole mini Drill Stern Test flowing oil at better rates then
the September 2010 flow test: confidence in the commerciality of the Sea Lion
discovery has been increased by this first appraisal. [67]
On 14 September 2011 Rockhopper Exploration announced plans are under way for oil
production to commence in 2016, through the use of Floating production storage and
offloading (FPSO) technology, replicating the methodology used on the Foinaven
oilfield off the Shetland Islands.[68] The proposal envisages a FPSO vessel located
200 km offshore servicing 24 production wells and 12 water injection wells in about
450 m of water. The wells will be arranged in clusters of 6 wells per drill centre. [69] The
two water injection well clusters will be 3.0 km from the four oil well clusters.[70] Oil will be
transferred from the FPSO vessel to shuttle oil tankers. [71] Each year thereafter the
production date has been pushed back another year. [72]
The production site will require approximately 110 people working offshore and another
40 working onshore.[73] The oil expected to trade at 90 - 105% of the Brent crude price.[74]
In May 2015 oil was discovered in Isobel deep in May 2015 by a consortium of oil
companies including Falkland Oil & Gas, Premier Oil, and Rockhopper Oil & Gas.[75][76][77]
East and south Falklands fields[edit]
As of 2011 the East and South Falklands Fields had not been fully evaluated; Leiv
Eiriksson, a 5th generation semi-submersible drilling rig, is expected to drill two
exploratory wells for Falkland oil and gas in 2012. [78]
Renewable energy sources[edit]
The islands have been investing in windpower – in 2010, three 330 kW wind turbines
were installed at Sand Bay, about 10 kilometres (6 mi) from Stanley on the opposite
side of the valley from three turbines that were installed in 2007. The island's
government has plans to install a 2 MWh battery storage system which will allow
surplus wind energy to be stored.[79][needs update] The first three turbines resulted in a 20%
reduction in the Stanley power station's fuel consumption and it was hoped that the
second set of three turbines would double this figure. In parallel, there are on-going
investigations into other forms of renewable energy for remote locations on the islands.
[80]

Transport in the Falkland Islands[edit]

Main article: Transport in the Falkland Islands
The Falkland Islands currently has three primary means of transport - road, sea and air.
There is now an international airport, a domestic airport, a number of airstrips, a
growing road network and a much-improved ferry service between the two main islands.

Philately and numismatics[edit]

1952 Falkland Islands stamp with Gentoo Penguins

In October 1877, the Secretary of State of the Colonial Office, the Earl of

Carnarvon began the process of application for the Falkland Islands to join the General
Postal Union (renamed Universal Postal Union in 1879). The first stamps, 1d, 6d, and
1 shilling values featuring the usual profile of Queen Victoria, were issued 19 June
1878. Since then the islands have issued their own stamps, which are a source of
revenue from overseas collectors. Between 2000 and 2008, the islands issued between
six and eight sets of commemorative stamps. [81] The workload placed on the Falkland
Islands Post Office by overseas collectors led to the establishments in 1978 of the
Falkland Islands Philatelic Bureau.[82] The Bureau also handles philately-related sales on
behalf of the governments of Government of South Georgia and the South Sandwich
Islands and of the British Antarctic Territory.
Coins and banknotes may only be issued by the Falkland Islands Government with the
authorisation of the British Government. Coins for local use were first struck in 1974 and
are the same size as the corresponding British coins. There is a flourishing business in
the issue of commemorative coins struck on behalf of the Falkland Island Government
for collectors – in particular the 2007 series of coins that commemorated the 25th
anniversary of the liberation of islands attracted much attention. [83] The Falkland Islands
Government (FIG) is required to deposit 110% of the face value of any coins struck on
its behalf into its currency fund,[84] thereby effectively backing the Falkland pound with
the pound sterling. In the case of commemorative coins that are unlikely to be
redeemed, this money represents a long-term investment. In many cases the set-up
and production costs are carried by the mint concerned, who pay the FIG a royalty on
coins that it sells to collectors.[84]
 See also[edit]
 Money portal

 Falkland Islands Company