Greenland blocks Trump-linked oil company from drilling, delaying Arctic project to 2027

Government blocks unauthorized drilling

Greenland's government has forced US oil company Greenland Energy to postpone exploratory drilling in the Arctic territory, announcing on 13 August that required permits and environmental assessments cannot be completed before the planned start date. The company had intended to begin drilling within about a week in the Jameson Land basin (Nunap Qeqqa) on Greenland's east coast. In July, Greenland Energy brought drilling equipment ashore near Nerlerit Inaat airport without the necessary authorizations, prompting a firm warning from the government. The nearest settlement, Ittoqqortoormiit, has roughly 300 inhabitants.

The government stated in a communiqué that the necessary administrative procedure could not be completed and that the requested authorizations could not be issued before the planned start date. Officials also said preparatory activities could not begin because the required environmental and social studies had not yet been submitted. During meetings with the company, Greenlandic officials expressed concern that the timeline was too tight to assess impacts on a protected wetland area home to rare birds and musk oxen that local hunters depend on.

Delay to winter 2027

Greenland Energy and its partners now aim to obtain permits by winter 2027-2028. Robert Price, CEO of Greenland Energy, said the company would use the additional time productively.

“Operating in the Arctic requires patience, flexibility and a long-term perspective. We will use this time to improve our plans and to deepen relationships with local communities, strategic partners and relevant authorities.”

Mute B. Egede, Greenland's Minister of Foreign Affairs and Natural Resources and former prime minister, publicly stated that drilling this autumn was "not realistic." The delay contradicts claims made in May by Jeff Landry, the Republican governor of Louisiana whom Trump appointed as his special envoy to Greenland.

“We could have those barrels in production within about 10 months.”

Landry had argued that oil beneath Greenland could alleviate the energy crisis caused by the US attack on Iran. In June, Price had claimed there could be one billion barrels of crude under Jameson Land and falsely stated the company already had permission to drill. Greenland Energy planned to invest 69 million euros (60 million dollars) in drilling two exploration wells.

Trump connections and market reaction

Greenland Energy has ties to several individuals and businesses associated with the Trump administration. Board member Carol Craig founded a defense technology company involved in a Pentagon contracting program supporting Trump's "Golden Dome" missile defense initiative. Billionaire Kenneth Griffin holds approximately 9% of the company's shares and supported Trump's second inauguration with one million dollars. The company also has an agreement for a documentary with Envoy Media, founded by "Dr. Phil" McGraw, who attended a Trump rally in 2024 and serves on the President's Religious Freedom Commission.

Following the announcement, Greenland Energy shares fell over 44% on Wednesday, while 80 Mile shares dropped over 20%.

Greenland Energy44%

80 Mile20%

Greenland Energy

44 %

80 Mile

20 %

Data from the article text

Political backdrop

Trump has repeatedly threatened to acquire Greenland, floating the idea of purchasing the territory from Denmark, occupying it with military force, or reaching an agreement. After the government's warning, Trump posted an AI-generated image on Truth Social showing his face looming over Ittoqqortoormiit with the caption "Hello Greenland!" Landry's stated objective is to "make Greenland part of the United States." Greenland stopped issuing new oil and gas licenses in 2021, citing the climate crisis. The current project benefits from licenses held by 80 Mile's subsidiary White Flame Energy, granted before the policy change. Protests have taken place in several Greenland cities over environmental concerns. Greenland has approximately 57,000 inhabitants across roughly 2 million square kilometers.