Greenland warns Trump-linked firm over unauthorized drilling preparations

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Texas Oil Firm Prepares for Greenland Drilling Amid Regulatory Dispute

A Texas-based oil company with ties to a businessman linked to former U.S. President Donald Trump is moving equipment in Greenland in preparation for a drilling campaign, despite warnings from local authorities that the movements were not properly authorized.

The project, located in the Jameson Land Basin, could mark Greenland’s first major oil drilling campaign in years. However, it still faces significant regulatory hurdles and the extreme costs and logistical challenges of Arctic operations.

Regulatory Warning Issued

Greenland’s government has stated that no approval was granted for the movement of the drilling equipment. Authorities noted that a previous approval for such movements has since expired and has not been renewed, though it is currently under consideration.

In response, the government said it would send a strong warning to the licensee, stating that “all future logistical matters must be advised and approved by the mineral resources authority – before they are carried out.”

Key Players and Project Details

The licensee for the Jameson Land joint venture is London-listed company 80 Mile Plc. Its partner in the operation is U.S. Greenland Energy Company, which has committed to funding 100% of the costs for up to two exploration wells designed to assess the hydrocarbon potential of the basin.

• Larry Swets Jr., believed to be close to President Trump, serves as chairman of the board at Greenland Energy.
• Swets responded to media coverage of the dispute on X, reposting a comment that described a Guardian article as “seemingly determined to manufacture a Trump controversy while burying the facts” about the two companies.

Company Statements and Revised Plans

In a recent letter to shareholders, Greenland Energy stated it “has continued advancing preparations for what we believe will be one of the most significant onshore exploration programs undertaken in Greenland in decades.”

The company emphasized that 80 Mile continues to lead the permitting process and stakeholder engagement, while Greenland Energy supports technical planning, operational readiness, and logistics.

“Together, our objective is to ensure that once all required approvals are received, the project is positioned to commence drilling safely, efficiently, and in accordance with Greenland's rigorous regulatory standards,” the company said.

Following discussions with government officials, the parties agreed to concentrate the 2026-2027 winter program on one exploration well, rather than pursuing two wells during the current field season. Greenland Energy described this as “the most responsible course of action.”

Greenland’s History of Exploration and Challenges

Greenland has seen oil exploration since the 1970s, involving major firms such as ExxonMobil, Shell, and Eni. None of these efforts resulted in a major discovery.

If the Greenland Energy project proceeds to drilling, it would be the first in Greenland in many years and could restart oil exploration in Denmark’s autonomous territory, which is roughly one-quarter the size of the continental United States.

The Economic and Environmental Reality

While Greenland is estimated to hold significant oil, gas, critical minerals, and rare earth elements, analysts warn that these resources remain largely theoretical.

• Cost and Infrastructure: The lack of energy infrastructure and processing capabilities casts doubt on the feasibility and economic rationale of extraction.
• Past Policy: Following 50 years of unsuccessful and sporadic exploration in the inhospitable Arctic, Greenland abandoned the quest for oil in 2021. At that time, the government stated that environmental concerns far outweighed the potential benefits of becoming an oil producer.

Despite its hydrocarbon potential, developing Greenland’s resources remains difficult and expensive.