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Greenland ends oil and gas search

GREENLAND GREENLAND has declared it will no longer dream of independence from Denmark, by
hunt for oil and gas, marking a major policy cutting the annual subsidiary of DKK3.4bn
turnaround for the self-governing territory of ($540mn) it receives.
Denmark. Greenland has been looking for oil and gas
The left-leaning government in Green- for 50 years, with initial efforts encouraged
land described the decision as a “natural step,” by soaring oil prices in the 1970s as a result of
because it “takes the climate seriously.” But OPEC supply cuts. The government enlisted
it also noted that unfeasible costs were also a Cairn Energy to start the search in 2009, and the
factor. company struck gas off Greenland’s west coast in
The US Geological Survey (USGS) estimates 2010. But Cairn spent over $1bn on dry wells in This marks a
that there could be 17.5bn undiscovered bar- the search for oil before giving up.
rels of oil and 4.2 trillion cubic metres of gas, BP, Chevron, ConocoPhillips, Eni, Equinor major U-turn
although no commercial discoveries have been and Royal Dutch Shell also secured licences, but
made yet. But the government on July 15 said it later left the country without making any discov- in Greenland’s
believed “the price of oil extraction is too high. eries. At present, there are four active hydrocar-
This is based upon economic calculations, but bon licences in the country, one of which is held policy towards
considerations of the impact on climate and by Panoceanic Energy and state-owned Nunaoil, hydrocarbons.
the environment also play a central role in this and three more controlled by Greenland Gas &
decision.” Oil.
The issue of new licences for oil and gas Denmark itself ended offshore oil and gas
exploration will end in Greenland, Minister for licensing in December last year, midway through
Natural Resources Naaja Nathanielsen com- a licensing round that was cancelled. Denmark,
mented, drawing attention to the need to pro- which flows around 100,000 barrels per day
tect the country’s nature, fisheries and tourism. (bpd) of oil, is the biggest oil and gas producer to
Greenland would be “better off focusing on sus- take such a step, which it did after similar moves
tainable development, such as the potential for by France, Ireland and Spain.
renewable energy.” West Europe’s largest producers Norway and
This marks a major U-turn in Greenland’s the UK has resisted such calls. Norway even
policy towards hydrocarbons. Just a year and a expects to continue issuing oil and gas licensing
half ago, the government adopted a new oil and for decades to come, while the UK has merely
gas strategy aimed at promoting more explora- increased the environmental scrutiny involved
tion, to help Greenlanders realise their long-held in the process.™

P10 www. NEWSBASE .com Week 29 22•July•2021