Greenland Blocks Oil Drilling Until 2027

Plans by US oil company Greenland Energy to begin exploratory drilling in Greenland have been postponed until at least winter 2027. Local authorities said there was insufficient time to complete the permitting process and assess the project’s potential environmental and social impacts before the originally planned drilling campaign.

The companies involved had already brought drilling equipment to Greenland’s east coast in July without the necessary approval, prompting a “strong warning” from the government. Authorities said future logistical activities must be approved in advance.

Authorities must also assess the potential impact on protected wetlands, which provide habitat for rare birds and muskoxen important to local hunters. Exploration drilling could now begin in winter 2027 at the earliest.

The delay contradicts a prediction made in May by Jeff Landry, US President Donald Trump’s envoy to Greenland, who said oil production could begin within about ten months.

Greenland Energy CEO Robert Price maintains that the Jameson Land region could contain oil worth $1tn. However, the figure is an estimate rather than a proven reserve: company filings cite up to 13bn barrels of gross, unrisked prospective recoverable oil, which has not been confirmed by drilling.

The company said it would continue preparations in accordance with Greenland’s regulatory process.

Following the announcement of the delay, Greenland Energy’s shares fell by about a third.

(guardian, bak)