Denmark/Greenland: Hydrocarbon Claims and Territory Disputes

Via Greenland, Denmark has a large geographic claim to the Arctic region. Like Russia, Denmark is claiming the North Pole. It claims that the western portion of the Lomonosov Ridge extends from Greenland to the pole and that therefore the Danes have the right to sovereignty over the pole itself. Denmark is also pushing some territorial claims in the islands of the Canadian Arctic Archipelago, saying that they are in fact an extension of Greenland's continental shelf.

As Denmark’s interest in the High North has increased, the Geological Survey of Denmark and Greenland (GEUS) has experienced a recent multimillion-dollar funding increase.  This is clear evidence that Denmark believes there is natural gas and oil potential in the region. Indeed, Greenland's Bureau of Minerals and Petroleum recently put the seabed of parts of the Greenland side of the Davis Strait to bid. Oil and natural gas are potential revenue-producers for both Denmark and Greenland officials as extraction techniques improve and more ice melts.

Greenland is in a relatively unique strategic position in the Arctic. Greenland is not physically connected to any major economy and as such could serve only as a launching point for military operations. It also has a population, according to the 2008 World Development Indicators, of only 56,739. In short, Greenland is isolated enough from the rest of the world that while not militarily powerful it faces a smaller national security threat than, say, Norway, Canada or Russia, whose Arctic borders are all gateways to major economies. With its limited resources, Greenland's ability—and need—to develop any sort of significant oceangoing Arctic operations are extremely limited. However, bilateral or multilateral agreements that provide Greenland with icebreaking capabilities could help to enforce environmental regulations and provide search and rescue within Greenland’s territory.

Oil and gas operations off of the shore of Greenland will likely use other nations' ports for day-to-day operations such as refining crude oil given the limited demand for these resources in Greenland and the country's distance from major economies. There is little reason that the Arctic sledge patrols in place for decades cannot continue to serve national security purposes. In addition, Greenland's harsh climate, including recent increased inland precipitation, makes any human activity extremely difficulty in much of the country, particularly to the north—a fact the early Viking settlers learned the hard way.

In light of Greenland’s resource endowment, Greenland and Denmark should focus on environmental and economic concerns. Clearly, developing the oil fields within the limits of Greenland's Exclusive Economic Zone has the potential to generate government revenues and job opportunities. Promoting indigenous peoples as a good source of labor for these operations can ensure that the domestic job market is positively impact by offshore drilling. Greenland and Denmark should participate in environmental monitoring and protection programs: the local environment is of vital importance to local ways of living and must be protected as such. Fish, walrus, whale and seal stocks need to be well-monitored, perhaps jointly with other proximate nations such as the United States, Iceland and Canada. Denmark's government and the local people will need to reach a medium between seeking to exploit the region and continuing to provide for, protect and incorporate Greenlanders into the resource economy.