A Texas-based energy company is advancing plans to drill Greenland's first onshore oil wells, targeting what geological assessments suggest could contain up to 9 billion barrels of recoverable crude oil. Greenland Energy, scheduled to begin operations next summer, has acquired drilling rights through grandfathered licenses that remain valid despite the territory's 2021 moratorium on new oil exploration permits.

The project centers on the completely undrilled Jameson Land Basin in eastern Greenland, where conventional vertical drilling techniques will test multiple geological zones. Third-party analysis estimates the basin's potential at 9 billion net barrels, with the first two wells possibly accessing over 1.2 billion barrels combined. This represents a significant departure from previous offshore exploration attempts that yielded limited success despite decades of industry investment.

Energy market analysts express cautious skepticism regarding the venture's commercial viability, citing extreme logistical challenges and current low oil price environments. The remote location lacks existing infrastructure, requiring substantial upfront investment in roads, equipment transport, and specialized Arctic drilling capabilities. Historical precedent suggests mixed results, with major operators like BP's former ARCO division and Cairn Energy abandoning Greenland projects after unsuccessful drilling campaigns.

The timing coincides with heightened geopolitical attention on Greenland following U.S. strategic interest in the territory, though company executives emphasize their operations remain independent of annexation discussions. Success could reshape Arctic energy development, while failure would reinforce skepticism about frontier exploration economics in an era of abundant conventional reserves and renewable energy transitions.