Greenland Energy is planning to launch the most ambitious exploration program in Greenland’s history that would change the economic fortunes of Greenland forever. According to Chief Executive Robert Price, Greenland’s oil basin may be as rich as Alaska’s Prudhoe Bay field. He points to the major reserves that could be lurking below all that land protected by the White House. The company is planning a two-well exploration program to commence later this year. They are aiming for a remote, drill hole-sized dot on the map in Jameson Land, which lies about halfway up Greenland’s eastern coast.
The east coast of Greenland is famous for its extreme weather conditions. Fierce winds and great towering waves often hamper operations there. Even with these challenges, the possible rewards are huge. Price estimates that the oil-rich basin has the potential to contain as much as 13 billion barrels of gross oil. This new find has the potential to profoundly shake up the entire world’s energy market.
The bold declaration by the Greenland government five years ago was that “the future does not lie in oil.” They quickly enacted a moratorium on new oil and gas leases. If exploration efforts currently underway prove fruitful, it could again stir debate over whether a long oil future lies in store for the region. Price has shown a personal desire to protect the Greenlandic people, their culture, and their independence. He stated, “We are focused on respecting the Greenlandic people, their culture, their independence and doing what our part is in helping them become more independent and revenue-generating.”
The logistics behind the round-the-world drill are massive and mind bending. Items are arriving on the ice from Alaska, Denmark, Alberta, and other regions of Greenland. The Port of Valleyfield, just west of Montreal, acts as a transshipping depot for these cargoes. The mission team will use the Miena Desgagnés multipurpose cargo vessel to transport people and materials. This ship is equipped with two 250 ton cranes capable of lifting 500 tons combined. With an outstanding 50-year history, it has been through the most extreme Arctic conditions.
Even the drilling process itself would be challenging though not impossible, with Greenland’s remote wilderness presenting obstacles. The initial exploratory well is expected to take 30 days to drill. That’s at least four times longer than other regional similar wells. A similarly deep well in Alberta would usually only take around a week to finish. As Price noted, “We’re going to take our time, we’re gonna go slow,” signifying a cautious approach to this ambitious project.
Joyce added that the exploration team is already encountering difficult logistical challenges. In addition, they need to be entirely self-sustained while living off the land. This requirement highlights the remoteness of their work environment and the importance of detailed advanced planning. Price highlighted the excitement surrounding the potential discovery of oil in Greenland, saying, “People that I’ve talked to in Greenland, they want to know if they have one of the largest oilfields in the world.”
One more thing to commend the nature of the oil in Greenland is its exceptional quality. Price boasted that it was as good as North Sea oil—light, sweet crude, which is more cost-effective to refine. He elaborated on his experience with crude oil, stating, “I’ve been in the oil and gas business a long time and I’ve been on many wells and when you smell that light sweet crude, it actually smells sweet.” Given its ubiquity, this characteristic would make any future extraction efforts more realizable and profitable.
As Greenland Energy sets its sights on this game-changing exploration program, it has both a gauntlet of challenges and a wealth of opportunity to navigate. Today, the juxtaposition of ecological concerns and economic aspirations still heavily influences public debate on oil exploration in Greenland. Price envisions that success in this venture could mirror the oil booms of past decades: “It’ll be like the oilfields of the ’20s and ’30s and ’40s.”
