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Wikileaks reveals weak Falklands oil

|Includes:REPYY, Exxon Mobil Corporation (XOM), YPF

 The once-secret diplomatic cables currently making the rounds have plenty to tell investors as well as global political analysts. For example, count out the Falklands as the next oil war.

Documents that Wikileaks leaked recently show that according to ExxonMobil (XOMquote) there simply is not enough oil in the disputed Falkland Islands to profitably exploit, much less fight over.

If true, it would explain why Royal Dutch Shell (RYDAFquote) gave up on the Falklands back in the late 1990s.

However, recent drilling by independent names like Britain's Desire Petroleum (DSPMFquote and Rockhopper Exploration (RCKHFquote) has delivered what those companies at least consider encouraging results.

So far, interest from Argentine oil companies has been limited. Should massive deposits of petroleum -- onshore or, more likely, in the Falklands' big coastal zone -- be found, it could easily highlight the disputed ownership of this territory and possibly even rigger another Argentine-Briish turf war down in the South Atlantic.

But while Argentine interests like YPF (quote) -- or parent company Repsol (REPquote) -- have been very quiet lately when it comes to the Falklands, they have also been building up their offshore expertise.

If assets actually exist down there, these companies are in much better position to protect what they may see as thei fair due.

Disclosure: no positions