Greenland: US firm prepares unlicensed drilling amid Trump links and oil reserves

Preparations for a controversial hydrocarbon exploration operation are underway in eastern Greenland, spearheaded by the American company Greenland Energy. The company, reportedly linked to individuals with ties to Donald Trump's circle, aims to begin drilling during the 2026-2027 winter season in the Jameson Land area, a region characterized by its isolated Arctic tundra and highly sensitive ecosystem.

Greenland Energy, in collaboration with the British firm 80 Mile, initially planned two boreholes to a depth of 3,500 meters. However, the company has since announced a revised plan to focus on only one of the two selected sites during the first phase. Greenland Energy asserts that it will not commence drilling without a permit, yet acknowledges that technical and logistical preparations are progressing daily. This is occurring despite the Greenlandic government not yet giving the green light.

The company argues that large-scale Arctic operations require months of preparatory work, and any delay could result in missing the narrow window of opportunity dictated by the conditions. The situation is complicated by Greenland's licensing policies. The government in Nuuk halted the issuance of new oil and gas exploration licenses in 2021, following nearly fifty years of unsuccessful exploration efforts. This decision was also framed as part of Greenland's new environmental policy.

However, 80 Mile holds three older licenses for the Jameson Land area, acquired in 2015 when it absorbed White Flame Energy, the original rights holder. While these licenses remain valid, they do not grant the company the right to proceed without supplementary approvals for the specific drilling activities and their environmental impact. A study by Sproule ERCE estimates that the eastern Greenland basin could hold up to 13 billion barrels of recoverable oil, though this figure represents potential resources, not confirmed commercially viable reserves. The challenging conditions, lack of extensive infrastructure, and high extraction costs could significantly limit the economic value of any discovery.

Greenland Energy has agreed to finance the entire cost of the first phase, and upon completion, it is expected to acquire a 70% stake in 80 Mile's project. Despite the pending approvals, a substantial portion of the infrastructure appears to have already been transported to Greenland. Approximately 300 large containers filled with machinery, vehicles, tools, and specialized equipment have been sent to the area. Heavy cargo has also been moved to Nerlerit Inaat, the airport near the isolated town of Ittoqqortoormiit and the drilling site.