A Texas-based energy firm with deep ties to US President Donald Trump has sparked international outrage by preparing for oil exploration on the remote shores of eastern Greenland. The planned project comes just days after the president renewed threats to seize the autonomous Arctic territory prompting speculation among critics about whether US efforts to expand influence in Greenland are already under way.
The news came after Greenland Energy delivered heavy extraction equipment to the ecologically fragile Jameson Land region without securing the required permits from local authorities. This prompted the Greenlandic government to issue a warning last week, demanding that all future corporate activities receive explicit approval before taking place.
Founded only last year, the American corporation claims that up to US$1 trillion (£741.2 billion) worth of crude oil lies beneath the frozen tundra. While the company intends to drill two exploratory wells, it currently lacks the legal authorisation to break ground on the island.
Despite these regulatory hurdles, residents were reportedly shocked last month when they witnessed a large barge arrive and unload containers of industrial machinery. A Danish news outlet reported that the shipment was intended for the controversial Texas oil venture.
Connections Fuel Greenland Concern
Suspicions regarding the project have intensified due to the prominent political figures involved in its leadership. Larry Swets, the chair and a major shareholder of the energy firm, frequently interacts with the president's inner circle and has publicly dismissed any links to American annexation plans.
However, the company recently hired former television host Phil McGraw to produce a documentary series about the mission of its wildcatters. McGraw previously served on a religious freedom commission during Trump's first administration, raising further questions about the project's broader context.
Adding another connection, the board also includes a US Navy veteran who works on the Golden Dome missile defence system. Trump has repeatedly described control of the Arctic island as vital to US national security, including the proposed missile defence initiative.
These connections have raised concerns among critics who fear corporate activity could precede greater US involvement in the territory. Kenneth Roth, the former executive director of Human Rights Watch, questioned on social media whether the unauthorised equipment delivery represented the beginning of an American takeover.
Historian Ruth Ben-Ghiat echoed similar concerns, warning that hostile foreign takeovers have historically begun with seemingly routine technical projects. She argued that such operations can provide cover for reconnaissance and advance preparation.
Meanwhile, Trump added fuel to the diplomatic debate over the weekend. He appeared on a conservative television network and agreed with a host who predicted Greenland would fall under American control by 2029, replying that the broadcaster 'would be right.'
Global Fears Over Unauthorised Oil Drilling
The diplomatic tension intensified when Trump posted a manipulated image on his Truth Social platform. The picture depicted him looming over a small Arctic settlement, accompanied by a greeting to the local population.
To recall, Trump earlier this year threatened economic measures and declined to rule out military action if Denmark refused to cede the territory. He also proposed tariffs on several European nations, although those measures were not ultimately imposed.
Professor John O'Brennan, an expert in European politics at Maynooth University, cautioned that the world should not underestimate Trump's interest in Greenland. He described the corporate activity in Jameson Land as the 'latest example of lawlessness' by political allies.
O'Brennan also warned that European governments could soon face a significant geopolitical test. Greenland falls under NATO's collective defence framework, although experts note there is no clear protocol for a dispute involving allied states.
Meanwhile, Greenlandic officials must decide how to respond to the industrial equipment already delivered to the site. They ultimately decided that ordering its immediate removal 'would not be proportionate', highlighting the complexity of the situation.
Granting permission for the extraction project would mean allowing activity in a protected wetland conservation area, likely drawing strong opposition from environmental groups. Refusing the permits, however, could escalate tensions with the company and its supporters.
Jessica Berlin, a senior fellow at the Center for European Policy Analysis, urged local authorities to reject the drilling plans. She argued that showing any diplomatic weakness would only encourage further pressure from the Trump administration.
Berlin also directed her message to Danish and Greenlandic leaders, urging them not to give the company any ground. She compared Trump to Russian President Vladimir Putin, arguing that yielding now would merely 'open the floodgates.'
Despite lacking the necessary environmental approvals, the Texas corporation has indicated it intends to continue pursuing its Arctic ambitions. A company representative said another vessel carrying additional extraction equipment is expected to leave Canada in September.
The firm expects to commence drilling operations by October, subject to regulatory approvals, despite objections from regional authorities. With millions of dollars (potentially billions) and significant geopolitical stakes involved, attention is likely to remain focused on how the dispute develops over the coming months.
Originally published on IBTimes UK
