Nicolai Haugsted
Fresh Greenland headache for Trump as authorities delay US-linked oil project.
Greenland has delivered a setback to an ambitious American oil project that had been moving considerably faster than local authorities were prepared to allow.
Plans to begin drilling on Greenland’s eastern coast this autumn have been postponed after officials concluded that environmental assessments and regulatory approvals could not be completed before work was scheduled to start.
The decision affects Greenland Energy, a U.S. company with several connections to figures around Donald Trump’s administration. Company executives have promoted the possibility of enormous oil reserves beneath Jameson Land, while Trump’s Greenland envoy had suggested production could begin remarkably quickly.
Greenland’s government has now made clear that the timetable will be determined in Nuuk rather than Washington, according to The Guardian.
Greenland Energy had been preparing to drill its first wells within weeks. Equipment had already been brought ashore in July without authorization, prompting what Greenland’s government described as a “strong warning.”
Officials have since held discussions with the company and concluded that its proposed schedule left insufficient time to examine the project properly.
“The necessary regulatory process cannot be completed, and the necessary approvals cannot therefore be obtained before the planned start of drilling,” the government said.
Environmental considerations could prove particularly important. Proposed drilling would affect a protected wetland containing rare bird species, while muskoxen in the region provide an important resource for local hunters.
Winter 2027 is now considered the earliest possible starting point for drilling.
Trump envoy predicted oil within months
The delay contrasts sharply with predictions from Jeff Landry, the Louisiana governor appointed by Trump as his envoy to Greenland.
Landry visited the territory in May and suggested potential Greenlandic oil production could help address energy pressures linked to the U.S. attack on Iran.
“We could have those barrels on production within 10 months or so,” Landry said at the time.
Landry has also openly advocated making Greenland part of the United States, an objective rejected by Greenlandic and Danish leaders.
Trump has repeatedly expressed an interest in acquiring the Arctic territory and has discussed several possible routes, ranging from a purchase from Denmark to more coercive options.
Greenland Energy insists its commercial ambitions should be viewed separately from that political campaign.
Chief executive Robert Price has estimated that oil worth as much as $1 trillion could lie beneath the Jameson Land area.
Plans before the intervention envisioned a vessel carrying around 300 containers of drilling equipment leaving Canada in September, followed by the first well in October.
Price had also told a local community meeting that permission had been secured to begin bringing equipment ashore, a claim contradicted by Greenlandic authorities.
Following the postponement, his message was considerably more focused on regulatory compliance.
“Greenland Energy remains committed to advancing its oil exploration programme responsibly and in accordance with Greenland’s regulatory process, and in full compliance with Greenlandic authorities,” Price said.
The additional time, he added, would be used to improve the company’s plans and strengthen relationships with communities, authorities and commercial partners.
Trump connections attract attention
Greenland Energy was established last year and intends to spend $60 million raised from investors on exploration in exchange for a majority stake in the project.
Several connections between the company and Trump’s political orbit have attracted scrutiny.
Television personality Phil McGraw, better known as Dr Phil, has an agreement with Greenland Energy to produce a documentary series following the project. McGraw has appeared alongside Trump in the Oval Office and served on the president’s religious freedom commission.
Greenland Energy’s board also includes a U.S. Navy veteran involved with Golden Dome, Trump’s proposed missile-defense system. Trump has previously argued that American control of Greenland is “vital” to that project.
Wall Street billionaire Kenneth Griffin, who contributed $1 million toward Trump’s second inauguration, acquired a 9 percent stake in Greenland Energy in April.
Investors had hoped political attention surrounding the venture might boost the company’s fortunes. Markets instead delivered the opposite reaction after news of the delay emerged, with Greenland Energy shares falling by more than a third on Wednesday.
British partner 80 Mile acknowledged that the permitting process had forced the schedule to change.
“While we are disappointed that the timing of the Jameson drilling programme has been impacted, the company remains fully committed to advancing this highly prospective project,” chief executive Rod McIllree said.
Existing exploration licences predate Greenland’s 2021 decision to stop issuing new oil exploration permits because of concerns over the climate crisis. Any attempt to turn those licences into actual drilling operations will now have to wait for Greenlandic authorities to complete their review.
