United States President Donald Trump's promise of a massive oil and gas exploration drive in Greenland has sent shares of Greenland-linked companies soaring, but the island's mining authorities say the scale of activity he described remains a long way off. The 47th US President announced the plans on Truth Social on Wednesday, claiming Greenland could hold more easily accessible oil than almost anywhere else in the world.
He offered no timeline, companies involved, or details of how the proposed exploration would proceed. Investors reacted quickly.
Shares in Greenland Energy Company jumped around 75% and Greenland Mines rose 25% shortly after the US market opened, according to Business Insider. Critical Metals Corp, which owns a major rare-earth project on the island, also moved higher.
But the market excitement may be running ahead of reality. Jørgen Hammeken-Holm, Greenland's deputy mining minister, told CNN that US companies were active on the island but remained "very far away" from the massive exploration Trump had described.
Smaller exploration projects could still take years to become operational, he said. Greenland has considerable potential reserves of oil, natural gas, and rare-earth minerals, which are used in products ranging from smartphones to electric vehicle batteries.
Turning those resources into commercially viable projects, however, has proved difficult. The island's harsh Arctic climate, limited infrastructure, and challenging geology have held back previous attempts to develop its resources.
Greenland also stopped issuing new oil and gas exploration licences in 2021, citing environmental and climate concerns. Trump's announcement comes weeks after the United States, Denmark, and Greenland reached a security agreement aimed at easing tensions over his repeated attempts to bring the strategically located island under American control.