Greenland authorities have postponed planned drilling by Greenland Energy, a US oil company connected to Donald Trump, because the required regulatory process and approvals cannot be completed before the project’s scheduled start. The earliest drilling could now begin is winter 2027, according to the Greenland government and the company.
The delay follows concerns from Greenlandic officials that the timetable was too tight to assess the project’s environmental and social effects. Authorities must still decide whether to approve drilling in a protected wetland that supports rare birds and muskoxen relied on by local hunters.
Why the drilling was delayed
Greenland Energy brought drilling equipment ashore in July without permission, prompting a strong warning from the government. The company had planned to sink its first wells shortly afterward, but officials said the necessary assessments and approvals could not be completed on that timetable.
The company’s chief executive, Robert Price, said Greenland Energy remained committed to its exploration programme and would use the delay to refine its plans and deepen relationships with local communities, partners and authorities. British partner 80 Mile also attributed the postponement to the need to complete permitting and regulatory approval.
Related coverage: Greenland raises warning as oil company prepares exploratory wells.
The timetable falls far short of the US prediction
The postponement contradicts a prediction made in May by Jeff Landry, the Louisiana governor appointed by Trump as his envoy to Greenland. After visiting the territory, Landry said oil could be in production within about 10 months and argued that Greenland’s potential crude reserves could help ease an energy crisis linked in his comments to the US attack on Iran.
Before the delay, Price had said a ship carrying 300 containers of drilling equipment would leave Canada in September, with a first well planned for the following month. The project’s revised earliest start is winter 2027.
Why the project is politically and financially sensitive
Greenland Energy says its oil venture is not related to US annexation, but the company has several links to Trump’s administration and political network. A US Navy veteran involved with Trump’s Golden Dome missile-defence plan sits on its board, while billionaire Kenneth Griffin, who contributed $1m to Trump’s second inauguration, acquired 9% of Greenland Energy in April.
The company has also agreed to a documentary project with television personality Phil McGraw, known as Dr Phil, who recently appeared in the Oval Office with Trump. Investors had hoped for a presidential endorsement to lift Greenland Energy’s New York-listed shares; the stock fell by more than a third after the drilling delay was announced.
Greenland Energy plans to spend $60m raised from investors on drilling in exchange for a majority stake in the project. Its partner 80 Mile holds exploration licences issued before Greenland stopped granting new licences in 2021, citing the climate crisis.
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