Authored by Tsvetana Paraskova via OilPrice.com,
"Massive" oil, gas, and minerals exploration will soon begin in Greenland, U.S. President Donald Trump said on Wednesday, claiming that the territory has enormous resources of readily available oil.
Last month, the United States, Denmark, and Greenland signed an agreement to strengthen defense and security in the Arctic and North Atlantic, easing months of tensions over President Trump's frequent threats to seize the Danish territory. The agreement reaffirmed Danish sovereignty and the right to self-determination of Greenland residents.
"Massive Oil, Gas, and Mineral Exploration is getting ready to begin in our new and beautiful Greenland!," President Trump wrote in a post on Truth Social on Wednesday.
"There are Experts that are saying that the amount of easily available Oil is far greater than that of almost any land, anywhere in the World and, even more importantly, from a Security Purpose in the Defense and Offense of both the United States of America, and Europe, is second to none."
The U.S. President did not reveal any timelines of the start of oil, gas, and minerals exploration.
U.S. Greenland Energy Company has said it will fund 100% of the costs associated with up to two exploration wells in Greenland, designed to delineate the hydrocarbon potential of a project in the Jameson Land Basin.
The company this summer postponed its planned oil drilling campaign in East Greenland until winter 2027 after project equipment was brought ashore without prior approval by the government of Greenland.
Greenland has seen oil exploration since the 1970s involving major oil firms, including ExxonMobil, Shell, and Eni. None has resulted in a major discovery.
Greenland is estimated to hold oil and gas resources, as well as critical minerals and rare earth elements.
In practice, Greenland's resources are extremely expensive and hard to extract. The lack of energy infrastructure or any processing capabilities puts in doubt the feasibility and economic rationale of trying to mine rare earths and critical minerals, for example, analysts say.
"Despite its hydrocarbon and critical mineral potential, Greenland is not Venezuela 2.0.," Wood Mackenzie's top analysts say, noting that the large island is remote, inhospitable, underexplored, difficult to explore, and very high cost.