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By Tom Howarth
Science Reporter (Nature)
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Newly inaugurated President Donald Trump has, on multiple occasions, expressed his wish for the self-governing Danish territory of Greenland to be incorporated into the United States.
After his initial offer to buy Greenland from Denmark was rejected by the Danish government, Trump refused to rule out the use of military force to achieve his ambition.
The island is of geostrategic importance; located between the Arctic and Atlantic Oceans, it acts as a crucial buffer between the U.S. and Russia.
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But the battle over Greenland is about more than its advantageous location. The autonomous island is replete with natural resources, from the oil and gas that power the economies of today to critical minerals that will power the economies of the future.
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How Much Oil and Gas Does Greenland Have?
A 2007 estimate from the U.S. Geological Survey suggests that Greenland contains approximately 31.4 billion barrels of oil equivalent, including oil, gas and natural gas liquids.
While this represents a substantial energy deposit, it is far from the largest untapped resource globally. To put it into perspective, the U.S. consumed 7.39 billion barrels of petroleum in 2023 alone.
There are several barriers to extracting fossil fuels from Greenland, primarily its icy conditions and remote location. However, the retreat of ice and the effects of global warming are gradually making extraction more feasible.
Political will rather than feasibility may be the bigger stumbling block. In 2021, the government in Greenland introduced a moratorium on all future oil and gas exploration, citing that "the price of oil extraction is too high," both economically and for the planet.
This move stands in stark contrast to Trump's promise to "drill, baby, drill" as his administration seeks to shore up domestic energy supplies.
What Critical Minerals Does Greenland Have?
Perhaps more enticing for the incoming administration is the prospect of harnessing Greenland's vast mineral wealth.
Hidden beneath the icy surface of the largest island in the world are large deposits of rare earth elements (REEs), materials required for manufacturing batteries, renewable energy technology and military equipment.
REEs in Greenland include materials such as graphite, used in electric vehicles and steelmaking, nickel, zinc, gold, tungsten and many more.
Currently, Greenland has just two active mines, but licenses for exploitation and exploration have been granted at several other sites.
Western nations, including the U.S., are eager to tap into Greenland's resources to lessen their reliance on China, which accounted for more than 60 percent of global supply in 2023.
As with oil and gas, deposits of REEs are becoming increasingly accessible as ice recedes in the Arctic. However, that doesn't mean extraction is easy or cheap in Greenland.
Is a Takeover of Greenland Needed?
Both the governments in Greenland and Denmark have strongly rebuffed Trump's claims over Greenland, with the island's Prime Minister Múte B. Egede posting on Facebook: "Greenland belongs to the people of Greenland."
But while a takeover may be off the table, Greenland's resources certainly are not. "We need to trade with the U.S.," Egede said at a press conference in Greenland on January 14, according to public broadcaster KNR.
"We have the doors open in terms of mining. It will remain that way in the coming years. We have to trade with the United States."
Other experts agree. "We're about to enter an era of increased economic integration and tourism with Greenland," Sherri Goodman, secretary general of the International Military Council on Climate & Security, told Newsweek.
"I think you'll see increased tourism and trade in Greenland, which is increasingly independent from Denmark. Although it still has ties for defense and security and gets a lot of investment from [Denmark], it is increasingly looking to further its own economic development and independence."
For now, Trump still believes Denmark will "come along" on the sale of Greenland. "I think—it's costing them a lot of money to maintain it, to keep it," he told reporters on Monday night from the Oval Office.
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