Monday 19 July 2021

The Greenlandic underground is rich in both oil resources and minerals, and the history of exploration and exploitation activities goes back many years and has a global reach.

The Greenlandic government, Naalakkersuisut, remains committed to developing the country’s vast mineral potential, where this does not involve the extraction of uranium. Therefore, a draft-bill has just been sent out for consultation, which bans preliminary investigation, exploration and extraction of uranium in Greenland.

The Greenlandic population has based its livelihood on the country's natural resources for centuries, and the ban on uranium mining is rooted in a profound belief that business activities must take nature and the environment into account.

It is the same concerns that form the backdrop for the Greenlandic government's decision to introduce a stop to new oil and gas exploration.

An end to oil exploration

Greenlandic underground contains large unexplored deposits of oil. A recent study from The Geological Survey of Denmark and Greenland (GEUS) estimates that there are DKK 18 billion de-risked barrels of oil on the west coast of Greenland. Large deposits are also expected to hide below the seabed on the east coast of Greenland.

However, the Greenlandic government believes that the price of oil extraction is too high. This is based upon economic calculations, but considerations of the impact on climate and the environment also play a central role in the decision.

Against this background, Naalakkersuisut has decided to cease issuing new licenses for oil and gas exploration in Greenland. This step has been taken for the sake of our nature, for the sake of our fisheries, for the sake of our tourism industry, and to focus our business on sustainable potentials.