Beneath the ice covering most of Greenland sit rare earth minerals, nickel, copper, palladium, cobalt, oil and natural gas. For years, President Donald Trump has wanted greater American control there, and now that push has resulted in a security agreement between the United States and Denmark, with Greenland remaining under Danish rule.
Trump signed the agreement on the margins of the United Nations General Assembly, and it increases American military presence on the island while leaving Greenland under Danish control.
What the Ice Holds
Robert Price, who serves as both CEO of Greenland Energy Company and president of USFM Corporation, argues that the United States is working to lower its reliance on China and Russia for critical minerals. Those materials go into electronics, batteries, energy infrastructure and defense technology.
Price’s USFM is exploring nickel, copper, palladium and cobalt deposits around Disko Island in western Greenland. He compares the area to Russia’s mineral-rich Norilsk district, though its potential remains unproven as drilling continues.
The Oil Play
Price points to oil licenses held by USFM that he describes as similar to the petroleum system found in the North Sea. Oil has already been extracted from both above and below the surface.
An exploratory oil well is planned for 2027 on the island’s eastern side. Price tied the project to disruptions in the Strait of Hormuz, a critical artery for the world’s oil supply.
Why the Location Matters
Situated between North America and Europe, Greenland occupies strategic military and shipping lanes. Disputes in Ukraine and Iran have raised its significance for the United States and other major powers.
The farthest north base belonging to the Defense Department is Pituffik Space Base, which was previously known as Thule Air Base. The site serves as a support point for missile warning, missile defense, and space surveillance operations.
Climate Change Opens New Routes
As the ice covering the Arctic begins to melt, it is opening up new shipping lanes, which has drawn attention from the United States, Russia and China alike.
What the Deal Does
The deal increases American military presence on the island, yet keeps Greenland under Danish control.
| Event | Timing |
|---|---|
| Security agreement signed | On the sidelines of the UN General Assembly |
| Oil well planned | 2027, eastern Greenland |
| Disko Island exploration | Ongoing |
Price on Investor Confidence
The arrangement might also lift trust among investors in extended oil, gas and mineral ventures, according to Price.
“What it does is it shores up long-term investment in Greenland, and that’s what our projects are,” Price said. “They’re long-term investments from oil, gas and minerals.”
Where the paper stands
The paper backs the deal between the United States and Denmark over any standoff, while keeping an eye on the risks of increased American military presence on the island. The arrangement leaves Greenland under Danish rule, which is worth preserving.
Greenland sits astride strategic shipping lanes, and its minerals matter to global supply chains. But the paper’s caution about foreign entanglements applies here too, and the increase in American military presence deserves watching.
For now, the paper supports the deal rather than a standoff, while keeping an eye on the risks of increased American military presence on the island.
Source material: “Trump's Greenland obsession isn’t random. Here’s what’s at stake,” Fox News.
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