Currently In: The United Kingdom

Sources indicate that the amount of oil and natural gas that can be coming into the United Kingdom could be as low as 30% less than what was originally estimated. "Rockhopper Exploration Plc, a U.K. company searching for oil and gas off the Falkland Islands, tumbled in London trading after its advisers said resources may be lower than expected." The article goes on to say that the company as a whole took a dive of 21%, the lowest in recent months. The company does intend to hire an additional oil rig in order to try and help with the sudden shortage but this could be an example of too little too late for Rockhopper Exploration Plc. The company also opted to wait until the second half of 2011 to release "a resources evaluation report." Richard Rose, an analyst at Oriel Securities Ltd released the following statement: “There remains considerable uncertainty over resources and reserves until further wells have been drilled,” The largest off shore oil drilling company in the United States, Diamond Offshore Drilling Inc, has offered a semi submersible rig to Rockhopper for 3 wells and possibly 5 extensions according to the article. The company also signed two letters of intent, not contracts, for an additional survey that will start work before February.

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Becuase there is less oil produced as of right now there will be less quantity supplied to the United Kingdom. Because of this the PPF shifts inward to represent a decrese in Oil Produced (vertical line) and Quantity Supplied of Oil (horozontal line).