Greenland Energy, a Texas-based oil company linked to Donald Trump, has reportedly been touting "sealskin diplomacy" in Greenland, a term referring to their efforts to engage with local communities and authorities. This comes amidst significant controversy for the company, which moved drilling equipment ashore on Greenland's east coast without the required permits. Greenland's mineral resources authority issued a "strong warning" to the company's joint venture partner, White Flame Energy, for this unauthorized action, leading to a delay in their drilling plans.
Greenland Energy, formed through a special purpose acquisition company merger in March, aims to unlock the oil potential of the Jameson Land Basin, an onshore area of approximately 2 million acres. The company claims the region could hold $1 trillion in crude oil and planned to spend $60 million on two exploratory wells. Despite the geological potential, past drilling efforts in Greenland, particularly offshore, have been unsuccessful, with hundreds of millions of dollars wasted.
The unpermitted movement of equipment and the company's chairman, Larry Swets', ties to Trump have added a geopolitical layer to the situation. Trump has expressed strong interest in acquiring Greenland, and the actions of Greenland Energy have been seen as potentially disrupting delicate diplomatic processes between Greenland, Denmark, and the United States. The delay in drilling, now targeted for winter 2027, has also impacted the company's stock, with Greenland Energy shares closing over 44% lower and its partner 80 Mile's shares down over 20%.
