Trump Touts ‘Massive’ Oil, Gas Exploration in Greenland
by Andreas Exarheas | Rigzone Staff
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
U.S. President Donald Trump said ‘Massive Oil, Gas, and Mineral Exploration is getting ready to begin’ in Greenland.
In a statement posted on his Truth Social page on Wednesday, U.S. President Donald J. Trump said “Massive Oil, Gas, and Mineral Exploration is getting ready to begin” in Greenland.
“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,” he added in the statement.
“Any future attack on the United States will have to come across Greenland, where our Defense will routinely knock down drones, missiles, or any other form of weapon not yet even conceived,” he continued.
“It gives us time, location, and sightline, like nowhere else in the World!” he went on to state.
A blog posted on Wood Mackenzie’s website back in January, which was curated by Wood Mackenzie Chairman Simon Flowers and included input from Wood Mackenzie Vice Chairman Gavin Thompson, warned that Greenland is not “Venezuela 2.0”.
“In contrast to Venezuela’s massive – though dilapidated – oil industry, Greenland’s hydrocarbon sector has barely scratched the surface,” the blog noted.
“While the country has high subsurface potential and is an underexplored frontier area with appropriately attractive fiscal terms, its Arctic location poses extreme challenges for explorers,” it added.
“To date, just 25 exploration wells have been drilled, predominantly in Greenland’s Southwest basin – each was unsuccessful,” it pointed out, noting that the “most promising” potential for oil and gas “lies in the far less accessible offshore east”.
Wood Mackenzie’s blog outlined that the U.S. Geological Survey estimated around 31 billion barrels of oil equivalent of of technically recoverable resources across eastern Greenland, but noted that, “without any modern seismic data, this appears highly optimistic”.
The blog went on to state that the island’s remoteness, short summer drilling window, and lack of infrastructure present technical and operational hurdles for both exploration and development.
“With a landmass roughly 25 percent that of the continental U.S., Greenland has fewer than 100 miles of paved roads,” it said.
“Most onshore exploration sites are accessible only by helicopter, significantly increasing costs and limiting equipment size,” it added.
“Offshore exploration would likely need powerful icebreakers – in short supply outside Russia – to clear paths for seismic surveys and drilling operations. Oil companies are at home in harsh environments, but Greenland is on another level,” it warned.
Wood Mackenzie’s blog noted that majors including Shell, Eni, Equinor, and ExxonMobil previously held Greenland exploration acreage but have since all exited.
“Since 2021, Greenland’s government has banned new exploration licences over environmental concerns, although licence extensions have been approved for its three existing licences in the Jameson Land Basin, held by London-listed 80 Mile,” the blog noted.
The blog went on to state that Greenland’s mineral resources are “vast”, including deposits of iron ore, copper, graphite, zinc, gold, and uranium.
“In addition, the Geological Survey of Denmark and Greenland identifies the Gardar alkaline province in southern Greenland as holding prolific rare earth elements, along with lithium, tantalum, niobium, and zirconium,” the blog highlighted.
The blog warned, however, that around 80 percent of the island is covered by the Greenland Ice Sheet, “averaging a mile thick, meaning only limited work has been undertaken to quantify the true scale of Greenland’s deposits”.
“Global mining companies might covet Greenland’s critical minerals, yet today there are only two operating mines across the entire country – the Nalunaq gold mine, operated by the TSX-listed Amaroq, and an anorthosite mine on Greenland’s west coast, operated by Lumina,” it pointed out.
In commentary sent to Rigzone by the Morningstar DBRS team back in July, the company stated that “it is inaccurate to say that Greenland has a wealth of mineral deposits or oil and gas fields that are waiting to be mined, as the exploration work has simply never been completed to make this confirmation”.
“Given the lack exploration success to date, Greenland’s military and trade route considerations are more essential than its natural resource endowment,” the commentary added.
In this commentary, Brian Szeto, Senior Vice President of Energy and Natural Resources Ratings at Morningstar DBRS, said, “as climate and weather changes expose more of the country landmass for the very first time, we may see increased exploration in the medium and longer term”.
He added, however, that “this increased greenfield exploration has yet to begin and is typically a high-cost, low-reward endeavor”.
Rigzone contacted the White House and Greenland’s Mineral Resources Authority (MRA) for comment on Wood Mackenzie’s blog and Morningstar’s commentary. Rigzone also contacted the MRA for comment on Trump’s Truth Social post.
In response, a White House official told Rigzone, “as the President says, energy security is national security”.
“American leaders have recognized the strategic importance of Greenland for over a century. Only President Trump had both the vision and the ability to convert that recognition into a strategic victory for the United States,” the official added.
At the time of writing, the MRA has not responded to Rigzone with a comment.
Greenland’s MRA website describes Greenland as an “underexplored, mineral-rich country with a competitive licensing framework, stable political environment, low investment risk and pro-mining population and government”.
by Andreas Exarheas | Rigzone Staff
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas