Hard Facts About Greenland's Resources Of Oil And Rare Earths

Oil and Gas - Greenland has potential oil and gas reserves, primarily offshore in the eastern region, but previous drilling efforts in the Southwest basin have yielded no successful wells [2] - The U.S. Geological Survey estimates that Greenland could have 31 billion barrels of oil equivalent (boe), which is significantly less than major oil-producing countries like Venezuela and Saudi Arabia [3] - Major challenges for oil drilling in Greenland include the extensive ice coverage (80% of the country) and limited accessibility to non-ice-bound regions, which complicates both onshore and offshore drilling efforts [4] Rare Earths and Other Minerals - There is growing interest in Greenland's minerals due to its abundance of critical raw materials (CRMs) essential for electronics, military applications, and green energy technologies [6] - Greenland is not unique in its mineral resources, as geological formations similar to those in Greenland are found in Australia and Canada, which have more developed mining industries [7] - Current mining activities in Greenland are minimal due to harsh weather, lack of infrastructure, and high extraction costs, with only two productive mines despite numerous exploration permits [8] Global Supply Chain and Alternatives - China dominates the rare earths market, producing 61% and processing 92% of the world's supply, raising concerns in the West about supply chain security [9] - Australia is emerging as a key player in rare earths mining and processing, with significant investments aimed at bolstering its own security and supporting U.S. interests amid trade tensions with China [10][11] - Greenland's mineral potential is recognized, but better mapping and resource quantification are needed to attract mining companies and compete effectively in the global market [12]