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Greenland warns a Trump-linked Texas oil company after drilling equipment arrives without approval, as plans advance to explore Jameson Land for oil
A Texas-based oil company with links to Donald Trump is preparing to drill exploratory wells in Greenland despite not yet receiving the required permission from local authorities. The development comes as US President Donald Trump continues to threaten to take control of the strategically important Arctic territory. In recent days, equipment intended for drilling operations was brought ashore along Greenland’s remote eastern coast.
The move prompted Greenland’s government to issue a ‘strong warning’ that the company had not been granted permission to land the equipment. “All future logistical matters must be advised and approved by the mineral resources authority, before they are carried out,” the government said in a statement. Just two days later, Trump published another provocative post on Truth Social featuring an image of himself looming over a Greenlandic village, renewing attention on the US president’s ambitions for the territory.
Greenland Energy, a Texas company established last year, says as much as $1tn worth of crude oil could be located beneath the Jameson Land region. The company has announced plans to spend approximately $60m drilling two exploratory wells to determine whether commercially viable oil reserves exist beneath the remote landscape.
However, Greenland halted the issuing of new oil licenses in 2021, citing environmental concerns. A British company, 80 Mile, had already secured exploration rights in Jameson Land. Corporate filings from Greenland Energy indicate that the Texas company plans to acquire a majority stake in the project in return for financing the exploration programme. The project nevertheless requires approval from Greenland’s authorities before drilling can begin.
Greenland Energy has hired Phil McGraw, widely known as Dr Phil, to produce a documentary series about the project. McGraw is a prominent rightwing former television host who previously served on Trump’s religious freedom commission. The company has also appointed a US Navy veteran as a director. The individual is involved with Golden Dome, Trump’s proposed missile defence system, which the president has described as making control of Greenland ‘vital’.
Larry Swets, Greenland Energy’s chair and a major shareholder, has rejected suggestions that the company's activities are connected to Washington’s push for greater control over Greenland. He has said the oil project is “not related to American annexation”. The company previously faced criticism after a representative falsely told residents at a Jameson Land community meeting in June that permission had been granted to bring drilling equipment ashore. Swets subsequently acknowledged the confusion, saying: “Our enthusiasm for the project led us to communicate in a way that created confusion.”
The controversy intensified the following month when residents of the sparsely populated area spotted a tugboat towing a barge toward the coast. The vessel unloaded about a dozen containers, according to local reports. “The goal was to get the equipment onshore at Nunap Qeqqa [Jameson Land] in connection with planned oil exploration drilling,” the Greenland government’s statement said.
Danish investigative outlet Danwatch reported that the head of the shipping company confirmed the delivery was intended for Greenland Energy. The company has declined to answer questions about the operation. In a letter to shareholders issued on Thursday, Greenland Energy said: “Recent high-level meetings between project leadership and Greenlandic regulatory and oversight authorities have been constructive, and we continue to be encouraged by the progress being made toward the remaining approvals required for drilling.” The company added that, following those discussions, it now intends to drill one well initially rather than two.
Greenland’s elected authorities now face a difficult decision over the proposed drilling operation. The territory is semi-autonomous but remains part of the Kingdom of Denmark, and decisions concerning Greenland’s natural resources are controlled by its local government. Granting permission for oil exploration could expose the government to criticism because the planned drilling appears to be located within a conservation area protected under the Ramsar Convention on wetlands.
On the other hand, rejecting the project could potentially create another point of tension with the Trump administration, with some observers concerned that Washington could use the dispute to further its campaign for greater US influence over Greenland. Despite the absence of final approval, Greenland’s government said it 'would not be proportionate' to require the equipment already delivered to be removed. It added that an application for permission was still being processed.
A Greenland Energy representative has reportedly said that a vessel carrying 300 shipping containers of drilling equipment is scheduled to depart Canada on 12 September. The company plans to begin drilling the wells in October, subject to the remaining regulatory approvals.
Jeff Landry, the hard-right governor of Louisiana who has been appointed as Trump’s Greenland envoy, has previously suggested that Greenland could be producing oil as early as next year. The planned exploration therefore places Greenland’s environmental regulations, its control over natural resources and the Trump administration’s ambitions for the Arctic territory under renewed scrutiny.