A U.S. oil company is delaying its Arctic drilling project following permit discussions and a public rebuke from the Greenland government for moving equipment without authorization
Greenland Energy, the Texas-based firm leading the project, had hoped to begin drilling operations as early as October in the Jameson Land Basin in eastern Greenland—an estimate cited there could be up to 13bn barrels of prospective oil repeculative.”
That timeline has now significantly changed and the project cannot commence until the winter of 2027, at the earliest
The Greenland government on Wednesday issued a statement detailing that the “necessary regulatory process cannot be completed, and the necessary approvals cannot therefore be obtained before the planned start of drilling.”
It emphasized that “preparatory activities cannot be started either” and “several parts of the project are under regulatory review.”
Greenland Energy’s venture partner, the British outfit 80 Mile, said the team remains “fully committed to the project and intends to commence drilling as soon as the necessary approvals have been received and the programme can be undertaken safely and responsibly.” Greenland Energy’s share price dropped in the aftermath of the announcement
The project has stalled during a time where there is high U.S. interest surrounding Greenland’s oil potential
President Donald Trump’s Greenland special envoy Jeff Landry in May, when asked about strategic interests that the U.S. may have in Greenland, honed in on the possibilities surrounding oil
“Greenland could be exporting two million barrels of oil a day right now. Think about what that would mean. Think about what kind of pressure that would relieve in the Strait of Hormuz,” he said, referencing the ongoing disruption to the vital trade route. “We could have those barrels on production within 10 months or so.”
The U.S. interest comes amid a tense geopolitical backdrop, as Trump has repeatedly threatened to annex Greenland, a semi-autonomous territory of Denmark, since returning to office. Greenlandic and Danish officials have made it explicitly clear this is not something they are open to
Greenland stopped issuing new oil licences in 2021. However, Greenland Energy has access as its venture partner 80 Mile inherited a licenseation rights to Jameson Land prior to the cut-off date
But much more than a license is needed before digging can start. It’s a complex process with various authorization steps that need to be completed along the way. The U.S.-based oil company’s project faltered on one of these steps earlier in the summer, leading to a stern warning being issued by the Greenland government and a whole host of discussion
Here’s what happened, and what to know about the company spearheading the ambitious oil project
What is the drilling project and why did the Greenland government issue a public warning?
In March, Greenland Energy’s executives said they had obtained the rights from 80 Mile and its subsidiary company for licenses attached to the Jameson Land Basin in east Greenland.
The Texas-based oil company described the chance to explore Greenland as “a rare opportunity to unlock one of the largest undrilled onshore basins in the Arctic through a disciplined, environmentally responsible approach.”
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On July 30, Greenland’s Ministry of Industry and Mineral Relling project had been moved to the island’s eastern coast without authorization
“A strong warning will be sent to the licensee with a warning that all future logistical matters must be advised and approved by the mineral reshared statement
The government added that “the licensee did not have the necessary approvals from the mineral rever they opted against pushing for the equipment to be transported back, stating it would not be a proportionate demand
in the aftermath, Greenland Energy on Aug. 6 said recent meetings with Greenlandic officials had been “constructive.”
80 Mile acknowledged the government’s concern over the moving of the equipment, saying it “takes this warning seriously.”
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TIME has reached out to Greenland Energy and 80 Mile for comment
What do we know about Greenland Energy—and does it have links to Trump’s circle?
Some coverage of Greenland Energy’s actions has portrayed the firm as a “Trump-linked” company, focusing on potential links to the President
When this connection was put to CEO Robert Price in a July interview with the Greenlandic broadcasting cooperation KNR, he said that the company’s management had met with Trump’s envoy Landry, but emphasized the oil venture has “absolutely nothing to do with the Trump Administration.”
Carol Craig, who was appointed to Greenland Energy’s board in June, is the founder, CEO, and chair of Sidus Space—which in late 2025 was selected as one of the contract awardees to support Trump’s Golden Dome missile-defense strategy
Another Trump-associated figure connected with the U.S.-based oil company is Dr. Phil McGraw, who hosted the long-running talk show Dr. Phil
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The TV personality’s Envoy Media company has partnered with Greenland Energy in creating a six-part documentary series about the company’s “arctic exploration.”
McGraw hosted Price and Greenland Energy’s executive chairman Larry Swets on The Dr. Phil Podcast to discuss the project in a June 22 episode titled: “Frozen Gold.”
“I think it’s going to be a fascinating journey and I thank you for allowing us to be part of it,” McGraw said
In 2025, McGraw was appointed by Trump to serve as a member of the White House Religious Liberty Commission. The TV doctor recently spoke about his work with the presidential commission during an Oval Office event
Tensions between the U.S. and Greenland
Price and Swets have stated their exploratory efforts in Greenland are not related to American annexation
Even so, the drilling project is being discussed against a backdrop of great geopolitical tensions stirred by Trump’s repeated threats to annex Greenland
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The fact a U.S.-based company is at the forefront of the project has arguably resulted in the government warning receiving more international focus, experts say
“Any company who did this in Greenland would probably be treated the same way by the government. It’s not because it’s a U.S. company that this is happening,” Anne Merrild, a professor and head of the department of sustainability and planning at Aalborg University, tells TIME, but “if another country came in and did the same, it wouldn’t get the same attention.”
Trump shocked European allies in January when he threatened to burden them with additional tariffs unless Denmark agreed to sell Greenland—this was later walked back, but the economic threat garnered widespread backlash from world leaders
Trump threatening to annex Greenland has “created a situation where the population of Greenland are worried about what’s going to happen and have a greater need of feeling in control,” says Merrild
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The President has repeatedly stated that the U.S. needs to acquire Greenland as a matter of “national security.” Greenland’s positioning between the U.S., Russia, and Europe makes it a strong geopolitical asset, and Trump has argued that Denmark cannot be relied upon to protect the island
Ulrik Pram Gad, a senior researcher at the Danish Institute for International Studies, tells TIME that “the Greenlandic political system and authorities have actually been very resilient” in the face of the threats
“They’ve been sticking to insisting that we will help America take care of its legitimate security concerns, but we don’t want to give away our self determination and our sovereignty,” he says
Still, the topic has repeatedly returned to the forefront of U.S. political discussion
At the NATO Summit in Turkey in July, Trump again said Greenland“should be controlled by the U.S., not by Denmark” and as recently as Aug. 1 the Presidentposted an edited picture of himself peering over the Nordic territory with the caption, “Hello, Greenland!”
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