Trump’s Greenland oil exploration claim draws Danish rebuke
Denmark says Greenland’s laws still govern resource development after Trump said major oil, gas and mineral exploration was imminent.
By Daniel Okafor · Business Editor
2 min read
Donald Trump said on October 14 that large-scale oil, gas and mineral activity was preparing to start in Greenland, but Denmark said Trump Greenland oil exploration would remain governed by the territory’s laws. The exchange matters because the security agreement signed last month did not grant US companies rights to drill or mine, according to Reuters and Al Jazeera.
In a Truth Social post, Trump said major resource exploration was about to begin in the semi-autonomous Danish territory. He did not identify companies, projects, locations, agreements or a timetable, Reuters reported.
Denmark’s Foreign Ministry responded that any US effort to explore Greenland’s resources must take place under Greenlandic legislation. The ministry also said the September agreement among the United States, Denmark and Greenland gives US investors no preferential treatment over investors from other NATO countries, EU countries and NATO partners in access to Greenland’s natural resources.
What did the Greenland security agreement allow?
The three governments signed the 10-page agreement on September 22. It expanded US security cooperation and military activity in Greenland, including a path for two additional US bases and work connected to Trump’s proposed Golden Dome missile-defense system, Reuters reported.
The agreement also reaffirmed Danish sovereignty and Greenlanders’ right to self-determination. It did not allocate mining or drilling rights, Reuters and Al Jazeera reported. A security agreement can govern military cooperation without changing the legal rules that apply to resource permits.
Greenland’s deputy mining minister, Jørgen Hammeken-Holm, told CNN that US companies do have activity in the territory, but said Greenland remained far from the scale of exploration described by Trump. Smaller exploration efforts could take years to become operational, he said.
Does Greenland allow new oil exploration?
Greenland banned uranium mining and all future oil exploration in 2021, according to Reuters and Al Jazeera. That means Trump’s announcement did not by itself signal approval for a new oil project.
One outstanding issue concerns Greenland Energy, a Texas company. Greenland’s government is reviewing whether the firm can use permits that predate the 2021 restrictions, Reuters reported. The company said in August that it planned to drill at an untested basin on Greenland’s east coast in 2027, though Reuters reported it did not have its own permit.
Trump’s post came after months of tension over his push for US control of Greenland. The September pact increased the US military role on the island while leaving resource decisions subject to Greenland’s laws and existing permitting process, according to the Danish ministry’s statement reported by Reuters.
This story draws on original reporting from Al Jazeera.