Greenland is giving up its ambition to become an oil-producing country. The search for oil is halted and it will no longer grant licenses in the future.
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Oil has been sought in the country for half a century, but most attempts have been fruitless. Major oil companies such as Shell, Chevron and ExxonMobil relied on geological reports that signal the presence of 31.4 billion barrels of oil in northeast Greenland.
But the Greenland government believes that the consequences of exploration and extraction for the environment and climate are too great.
Between 2002 and 2014, Greenland awarded more than 20 licenses for exploration, the majority for potential offshore oil fields. Currently, four exploration licenses are still valid, three on the mainland and one for offshore waters. The licenses expire in 2027 and 2028.
In addition to the environment, economic considerations also play a role in the decision. Oil reserves would be difficult to extract profitably. The gains would be relatively small and the chance of losses real.
The search for other raw materials continues. This month licenses were awarded for exploration for gold and copper.
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