Exploration

Greenland Ends Unsuccessful 50-Year Bid to Produce Oil

Greenland Exploration

Greenland has ended its 50-year ambition to become an oil-producing nation after announcing on July 16 it would suspend a strategy of searching for oil and would stop granting exploration licenses.

Greenland Reuters Story

Oil exploration has taken place since the 1970s, involving major companies such as Shell, Chevron, Exxon Mobil and Eni, but most drilling came up dry.

Greenland’s potential mineral wealth and strategic location prompted former U.S. President Donald Trump to propose buying the Arctic island, an idea swiftly dismissed by Greenland’s government and Denmark. The new U.S administration also said this year it had no wish to buy the territory.

Naaja Nathanielsen, Greenland’s minister of natural resources, said in a statement on July 15 that the government “has assessed that the environmental consequences of oil exploration and extraction are too great.”

According to a 2007 U.S. Geological Survey (USGS) report, the underground in the northeast of Greenland potentially contains up to 31.4 billion barrels of oil equivalent.

But interest in exploring for oil in Greenland, which relies heavily on its fishing industry, has dwindled in the past decade amid oil price volatility and the risks and higher costs of working in pristine and vulnerable Arctic waters.

Greenland government data shows there are only four active exploration and exploitation licenses left – three onshore in Jameson Land on the east coast and one offshore in southwest Greenland. Those licenses expire in 2027 and 2028.

Exploration for hydrocarbons in Greenland peaked between 2002 and 2014 when more than 20 offshore licenses were granted.

Alongside environmental concerns, the government said its decision was underpinned by economic analysis showing any development would either deliver low profits or make a loss.

“It is a decision where climate considerations, environmental considerations and economic common sense go hand in hand,” Nathanielsen said. “Suspending the current oil strategy is the right choice.”

The suspension came into effect on June 24, the government said.

Credit: Reuters – Reporting by Nikolaj Skydsgaard; Editing by Elaine Hardcastle and Edmund Blair


ATTENTION MINERAL OWNERS:

NEED TO SELL OR LEASE YOUR MINERAL RIGHTS?  VISIT REDRIVERHUB.COM

RedRiverHub

The crossroads of energy information for minerals owners in Oklahoma. Where you can: See recent prices of mineral and lease transactions. Receive an offer to lease or buy your minerals.

Find relevant news stories on the most active areas, including the Scoop and Stack Plays.

Data Powered by Oseberg

Today’s E&P world is rapidly shifting towards data-driven decision making, but those decisions are only as good as the data behind them. Access Oseberg's deep, accurate, and detailed pool of insight-rich industry data with our powerful analytical and search tools and get the clearest picture of what's happening as soon as it happens.

Disclaimer

This web site is maintained solely for the personal use of our visitors. Although we at Oklahoma Minerals have made all reasonable efforts to provide accurate information, we cannot guarantee the completeness, timeliness or accuracy of the information contained herein. Nothing in this web site contains investment advice. Any decisions based upon the information contained in this web site are the sole responsibility of the user.

Copyright © 2021 OklahomaMinerals.com

To Top
Natural Gas Futures 'Reinvigorated' by Weekend Cold Shift as Prices Soar EarlyRead More