Greenland's government has compelled Texas-based Greenland Energy, a company with ties to Donald Trump, to delay its planned drilling operations in the Arctic territory, pushing the earliest possible start to winter 2027. The decision directly contradicts the claim made by Trump's envoy, Jeff Landry, that American oil extraction could begin as early as next year.
The company had been just weeks away from sinking its first wells into the tundra of the remote Jameson Land region when, on Thursday, the government stated: “The necessary regulatory process cannot be completed, and the necessary approvals cannot therefore be obtained before the planned start of drilling.” This followed a “strong warning” issued after the company brought drilling equipment ashore in July without permission, escalating tensions along Greenland's eastern coast amid what the government described as imperialist threats from the US president.
Regulatory Hurdles and Environmental Concerns
During talks, Greenlandic officials expressed concerns that the proposed timetable was too tight to adequately assess the environmental and social impacts of the drilling. The authorities must now decide whether to sanction drilling in a protected wetland that is home to rare birds and the muskoxen, which local hunters depend on for their livelihood.
The delay means that drilling cannot commence until at least the winter of 2027, as confirmed by both the government and the company. This timeline is a far cry from the prediction made in May by Jeff Landry, the hard-right Louisiana governor whom Trump appointed as his envoy to Greenland. Landry, whose stated goal is to “make Greenland a part of the US”, said after a visit: “We could have those barrels on production within 10 months or so.”
Company Response and Stock Impact
Robert Price, the chief executive of Greenland Energy, who maintains that oil worth $1tn could lie beneath the Jameson Land region, responded to the delay by saying: “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.” He added: “We will use this time to refine our plans and deepen relationships with local communities, strategic partners and relevant authorities.”
Shareholders, who had been hoping for a “Trump pump”, saw the company's stock price fall by more than a third on Wednesday following the announcement of the delay. The company, formed last year, has raised $60m (£44m) from investors to fund drilling in exchange for a majority stake in the project. Its British partner, 80 Mile, holds exploration licences granted before Greenland stopped issuing them in 2021 due to the climate crisis.
Political and Business Connections
Despite the setback, Greenland Energy has maintained multiple connections to the Trump administration. Phil McGraw, known as the chatshow host Dr Phil, has a deal with the company to “capture the mission of these modern-day wildcatters” for a documentary series. He recently appeared in the Oval Office with Trump and served on the president's religious freedom commission. A US navy veteran working on Golden Dome, the missile defence plan for which Trump says controlling Greenland is “vital”, sits on the company's board. Additionally, Kenneth Griffin, a Wall Street billionaire who contributed $1m to Trump's second inauguration, bought 9% of Greenland Energy's shares in April.
Rod McIllree, 80 Mile's boss, said: “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.” The delay now forces the company to navigate a lengthy regulatory process, with the earliest possible drilling start set for winter 2027, pending government approval.
