Key facts
- Greenland authorities have forced a US oil company connected to Donald Trump to postpone drilling.
- The company, Greenland Energy, brought drilling equipment ashore in July without permission.
- Greenlandic officials cited concerns about the tight timetable for assessing environmental and social impact.
- Drilling could now commence in winter 2027 at the earliest.
- A Trump-appointed envoy had previously predicted oil production within 10 months.
- Greenland stopped issuing exploration licenses in 2021 due to the climate crisis.
Greenlandic authorities have compelled a US oil company with ties to Donald Trump to postpone its drilling operations in the Arctic territory. Greenland Energy had brought drilling equipment ashore in July without prior authorization, prompting a stern warning from the government.
Officials stated that the necessary regulatory processes and approvals could not be completed in time for the planned drilling start. Concerns were raised about the tight schedule for assessing the environmental and social impacts of drilling in a protected wetland area that supports rare wildlife and local hunting traditions.
The earliest possible commencement for drilling is now projected for the winter of 2027, a significant delay from earlier predictions. As recently as May, Jeff Landry, a Louisiana governor appointed by Trump as his envoy to Greenland, suggested that oil extraction could begin within 10 months, potentially easing energy crises.
Robert Price, CEO of Greenland Energy, affirmed the company's commitment to proceeding responsibly and in compliance with Greenlandic regulations. He indicated that the extended timeline would be used to refine plans and strengthen relationships with local communities and authorities. The company aims to explore oil reserves estimated to be worth $1 trillion in the Jameson Land region.
Greenland Energy's British partner, 80 Mile, attributed the delay to the need for completing the permitting and regulatory approval process. Greenland had ceased issuing exploration licenses in 2021 due to climate crisis concerns. Greenland Energy, established last year, secured $60 million from investors for its drilling plans, aiming for a majority stake in the project.
Despite claims that the venture is unrelated to US annexation efforts, the company has established several connections to the Trump administration. Phil McGraw, known as Dr Phil, is involved in a documentary series about the company. A US navy veteran involved in missile defense plans for Greenland also sits on Greenland Energy's board. Additionally, billionaire Kenneth Griffin, a donor to Trump's inauguration, acquired a 9% stake in the company in April.