80 Mile Prepares for Oil Drilling in Greenland’s Jameson Land by 2026
The British firm 80 Mile is set to embark on its initial oil drilling efforts in Jameson Land come 2026, spurred by estimates suggesting a staggering 13 billion barrels of oil could lie beneath the surface. Through its Greenlandic subsidiary, Greenland Gas and Oil, the company has secured three licenses that not only allow for exploration but also grant the right to extract oil should commercially viable quantities be discovered—regardless of the preferences of the Naalakkersuisut, Greenland’s self-government.
Naaja H. Nathanielsen, the Naalakkersuisut’s minister responsible for Business, Raw Materials, Energy, and Equality, confirmed this development. She emphasized that while the company possesses these rights, they are not guaranteed carte blanche. Compliance with specific conditions outlined in the permits—including deadlines, environmental safeguards, and safety protocols—is of paramount importance. If 80 Mile fails to meet these stipulations, the government retains the authority to withdraw the licenses.
Understanding the Rights to Exploit
“Can the company commercialize oil despite the government’s stance?” In response to this inquiry, Nathanielsen acknowledged the complexity of the situation. “Partly yes,” she stated, referencing the dual nature of the permits granted under Section 16 of the Minerals Act. Yet, she quickly clarified that to move forward with exploitation, essential requirements—including environmental impact assessments and geological evaluations—must first be fulfilled.
Further complicating matters, Nathanielsen noted that the company’s licenses were issued prior to the government’s recent policy shift aimed at halting oil and gas exploration. “To have adjusted the permits would have signified expropriation, setting the stage for potential compensation claims,” she explained.
Keeping a Watchful Eye
Despite the existing permits, Nathanielsen assured that oversight mechanisms are in place. The raw materials authorities will closely monitor the company’s adherence to environmental and safety stipulations, with the power to impose fines or halt operations if the requirements are not met.
The Landscape of Oil Exploration
Turning to the significant estimates surrounding Jameson Land, 80 Mile’s director, Roderick McIllree, has projected that based on a crude oil price of $60 per barrel, the potential value of the site could exceed $780 billion, yielding approximately $4 million in revenue for every man, woman, and child in Greenland—if all goes as planned. However, Nathanielsen expressed caution regarding these figures, highlighting a countering analysis that suggests only a 10% chance of finding recoverable oil in the region, based on a comprehensive study by the U.S. Geological Survey from 2008.
“It’s critical to recognize that no deep drilling has been conducted in Jameson Land to date,” she said. “The data available primarily comes from the 1980s and lacks the accuracy we need to substantiate claims about the viability of oil extraction.”
Nathanielsen underscored the inherent uncertainties surrounding the geological conditions essential for oil production. Four key factors would need to be verified:
- The presence of a source rock capable of generating oil at depth.
- Favorable temperature and pressure conditions over geological time for the creation of oil from organic materials.
- The existence of porous reservoir rocks that can both house the oil and facilitate its production.
- An intact sealing layer to prevent oil from escaping.
“In short, while there’s potential, we need a clearer understanding of the subsurface conditions before projecting any possible production costs,” Nathanielsen concluded, signaling a cautious but thorough approach to one of Greenland’s most significant economic moments on the horizon.