An American oil company with ties to Donald Trump is preparing to sink exploratory wells in remote Greenland, despite failing to secure the necessary permissions from local authorities. This unauthorized activity has sparked a diplomatic standoff as the US president continues to renew his threats to claim the Arctic territory.
Materials intended for drilling were brought ashore in recent days on Greenland’s eastern coast, prompting the local government to issue a “strong warning” that no approval had been granted for the landing of the kit. In an official statement, the government declared: “All future logistical matters must be advised and approved by the mineral resources authority – before they are carried out.”
Two days after the initial warning, Donald Trump escalated tensions by posting a menacing image on Truth Social, which depicted him looming over a Greenlandic village. This post follows his repeated suggestions that the United States should seek to acquire the territory, a move that has caused significant anxiety among local officials.
Executives at Greenland Energy, a Texas firm established last year, claim that approximately $1 trillion worth of crude oil may lie beneath the Jameson Land region. The company has announced ambitious plans to spend $60 million drilling two wells to verify these estimates. Greenland Energy’s corporate filings indicate that the firm will take a majority stake in the project in exchange for funding the exploration, though it still requires formal government permission to proceed.
Although Greenland ceased issuing new oil licenses in 2021 due to environmental concerns, a UK-based company called 80 Mile had previously secured exploration rights in Jameson Land. To bolster its public profile, Greenland Energy has retained Phil McGraw, the prominent rightwing former chatshow host known as Dr. Phil, to produce a documentary series intended to “capture the mission of these modern-day wildcatters.”
The company’s leadership also includes a US navy veteran who is currently working on Golden Dome, a missile defense plan for which Trump claims control over Greenland is “vital.” Larry Swets, the chair of Greenland Energy and a major shareholder, appears to have close access to Trump’s inner circle, though he has publicly insisted that the oil project is “not related to American annexation.”
The situation began to deteriorate in June when a company representative falsely claimed at a community meeting in Jameson Land that they had already received permission to land equipment. Swets later apologized, stating that the company’s “enthusiasm for the project led us to communicate in a way that created confusion.” However, the following month, local residents noticed a tug pulling a barge toward the shore to unload a dozen containers. The Greenland government confirmed that the goal was to stage equipment for the planned oil exploration.
The Danish investigative outlet Danwatch reported that the head of the shipping company involved confirmed the delivery was intended for Greenland Energy. Despite the breach, the Greenlandic government stated it “would not be proportionate” to demand the equipment be removed at this time, noting that an application for permission remains under processing.
Greenland Energy has declined to respond to specific inquiries. In a letter to shareholders sent Thursday, the firm stated that recent high-level meetings with Greenlandic regulatory authorities were “constructive” and that they remain encouraged by the progress toward final approvals. The company added that, following these discussions, they intend to drill only one well initially.
As a semi-autonomous territory of Denmark, control over natural resources rests with Greenland’s elected leaders. They now face a difficult choice: grant permission for drilling—which may fall within a protected Ramsar convention wetland—or refuse and risk providing Trump with a pretext to advance his territorial agenda. Meanwhile, a company representative stated that a vessel carrying 300 shipping containers of equipment is set to sail from Canada on 12 September, with drilling operations slated to begin in October. Jeff Landry, the Louisiana governor and Trump’s Greenland envoy, has publicly stated that the territory could be pumping oil as early as next year. The report also notes that let alone what is being said, this prevents an observer from knowing that you are communicating with us at all.