US President-elect Donald Trump has reiterated his desire to purchase Greenland and said he does not rule out military or economic coercion when prompted by reporters.

During a press conference at his Florida resort on Jan. 7, reporters asked whether Trump would assure that he would not use military or economic coercion to take over the Panama Canal and Greenland, to which Trump said, “No, I can’t assure you on either of those two. But I can say this, we need them for economic security,” according to Reuters.

In response to Trump’s comments, Denmark and Greenland both said the island is “not for sale.”

Greenland, a vast island between North America and Europe and between the Arctic and Atlantic oceans, is an autonomous territory under Danish sovereignty.

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The island is also known for its rich oil, gas and mineral deposits buried beneath the snow that covers much of the island. The US also has an air force base and ballistic missile early-warning system in Greenland.

Some Danish officials think Trump is serious about acquiring/annexing Greenland this time, but whether Washington will acquire/annex territories from a NATO ally will be a different question altogether.

That said, acquiring Greenland could allow the US to capitalize on some of the military and global economic needs resulting from Russia’s 2022 invasion of Ukraine.

Make America safe again

Greenland, geographically part of North America, is vital for US security since the shortest route between the northern mainland parts of both Europe and North America runs via the Arctic island.

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The island has been hosting part of North American Aerospace Defense Command’s (NORAD) early ballistic missile early-warning system since the Cold War against potential Russian missile launches, with US secret nuclear bases built during the Cold War—now abandoned—that only recently came to light

The US also has its Pituffik Space Base (formerly Thule Air Base) in northwestern Greenland, where a 1951 defense agreement with Denmark granted the US the right to build and maintain military bases.

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The island could also allow the US to monitor the waters between the island, Iceland and Britain—a gateway for Russian navy vessels and nuclear submarines, according to a Reuters analysis.

However, the US embassy in Copenhagen said on Thursday that Washington has no plans to expand its military presence on the island.

It is unclear whether defense against Russia was part of Trump’s intent when he announced his desire to acquire Greenland—though he did say Greenland is vital to US national security—but the island’s strategic significance remains.

US oil and gas through Greenland?

Europe has significantly increased its import of US liquified natural gas (LNG) after Russia’s 2022 invasion of Ukraine as an alternative to Russian gas, but whether Greenland could play a role in future developments remains unclear.

In March 2022, the Biden administration signed an agreement with the EU to boost US LNG exports to the bloc by an additional 50 billion cubic meters by 2030.

However, it would be impractical to build infrastructure in Greenland to send US oil and gas through the island due to prohibitive costs, environmental risks, and the availability of more practical energy solutions such as tankers. No projects of such nature are planned.

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That said, analysts are speculating on Trump’s interest in the island’s rich natural resources.

Greenland boasts 25 of 34 minerals deemed “critical raw materials” by the European Commission and up to 31.4 billion barrels of oil equivalent in northeast Greenland, according to a 2007 US Geological Survey (USGS) report.

However, Greenland banned oil drilling and exploration in 2021.

Klaus Dodds, professor of geopolitics at Royal Holloway, University of London, told CNN that he believes Trump intends to reduce reliance on China through Greenland’s vast mineral deposits instead.

“There is no question at all that Trump and his advisers are very concerned about the stranglehold that China appears to have.

“I think Greenland is really about keeping China out,” Dodds told CNN, referring to China’s current domination of global rare earth production.

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