West Greenland

Commentary

Only a handful of wells have been drilled in the basin, with no commercial discoveries to date. The 2021 suspension of new oil and gas licensing effectively closes it to new exploration, and US pressure over sovereignty adds geopolitical risk. Outlook: Negative.

Updated

October 12, 2026

Location

Description

The tectonic evolution of the West Greenland Basin was complex and included number distinct phases, namely: (1) at least two phases of Cretaceous rifting and thermal subsidence between west Greenland and Canada; (2) counter clockwise rotation of Greenland driven largely by adjacent plate movements and the thermal effects of mantle plumes; (3) the development of the Ungava transform fault zone concomitant with the opening of Baffin Bay basin and the Labrador Sea; and (4) compression in the northern part of the province (Eurekan Orogeny) as Greenland rotated and collided with Canada in the Paleogene.

Summary

Only a handful of wells have been drilled in the Basin, with no commercial discoveries to date. Since June 2021 no new oil and gas licences have been issued and planned licensing rounds have been cancelled, effectively closing the basin to new exploration.