Why Trump Wants to Seize Greenland from Denmark: It's All About Oil

United States (US) President Donald Trump is highly ambitious about seizing Greenland. Since the start of the year, he has repeatedly voiced his desire to bring the Danish territory into the United States.

Trump has even threatened to impose large import tariffs if Denmark does not comply. In July, he again raised the matter.

As it turns out, it is all about oil. At least this is evident from the latest data released on Friday (14/8/2028).

A Texas-based company with links to US President Donald Trump is set to drill for oil in Greenland. The company is called Greenland Energy Co. The entity is an oil and gas exploration company listed on the Nasdaq.

Greenland Energy Co will drill for potential hydrocarbons in the Jameson Land Basin, an area on the east coast of Greenland. Greenland Energy’s joint venture partner, 80 Mile, is listed on the London Stock Exchange.

Greenland Energy itself owns a subsidiary called White Flame Energy. If Greenland Energy bears the cost of managing two exploration wells, White Flame Energy will handle the permitting process.

Greenland Energy has connections to a number of figures and companies linked to Trump and his administration. Board member Carol Craig is the founder of a defence technology company involved in a Pentagon contract programme to support Trump’s Golden Dome missile defence system initiative.

Greenland Energy also has a documentary production deal with Envoy Media, a company founded by “Dr. Phil” McGraw. McGraw spoke at a Trump campaign event in 2024 and is now a member of the Religious Liberty Commission established by Trump.

Greenland Energy chairman Larry Swets is also reported to have close ties to the Trump administration. However, when asked about Swets’ relationship with Trump at a meeting in June, CEO Robert Price said, “Not that I’m aware of.”

Greenland Energy Co is currently delaying drilling. This follows a stern rebuke from the Greenlandic government.

The rebuke was initially issued to White Flame Energy for bringing drilling equipment to Greenland’s east coast without obtaining permission from local authorities. The Greenlandic government stated that White Flame Energy did not have the necessary approvals before carrying out the activity.

The drilling equipment was brought to the vicinity of Nerlerit Inaat Airport. The area is a strategic transport hub considered the gateway to northeastern Greenland.

Greenland Energy and 80 Mile said they had previously obtained permits and signed contracts to lease storage space at Greenland Airports facilities near the port. However, both claimed they were unaware that the activity required a separate permit from the mineral resources authority.

The two companies said they take the government’s warning seriously. They committed to working more closely with Greenlandic authorities going forward.

Nevertheless, on 13 August, news of the oil drilling delay emerged. Greenland Energy Co said it is now targeting the permitting process for exploration drilling in winter 2027.

“Operating in the Arctic requires patience, flexibility, and a long-term perspective. We will use this time to refine our plans and strengthen relationships with local communities, strategic partners, and relevant authorities,” said Greenland Energy CEO Robert Price.

Greenland Energy was formed through a merger with a special purpose acquisition company (SPAC) in March. Its primary mission is to explore the oil potential of the Jameson Land Basin.

The area covers approximately 2 million acres, or 809,000 hectares, of licensed onshore land in Greenland. The company describes the Jameson Land Basin as one of the world’s most highly prospective yet undrilled oil basins.

The area is considered to have geological characteristics linked to the North Sea, on a scale comparable to several of the world’s major oil-producing regions.

Lewis Lawrence, senior research analyst for European upstream at Wood Mackenzie, said the area does have potential. According to him, the geology appears similar to the central Norwegian continental shelf, one of the world’s centres of oil and gas activity.

However, previous exploration efforts in Greenland have not yielded results. According to Lawrence, 21 exploration wells have been drilled, mostly offshore, and all failed to find developable reserves.

“Hundreds of millions of dollars have been wasted, particularly on far more expensive offshore drilling,” Lawrence told CNBC International.

Beyond exploration risk, the project also faces logistical challenges. The Jameson Land Basin is one of the most remote drilling locations in the world.