Thursday, May 20, 2010

Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Encana (NYSE:ECA), Awarded Oil Exploration Licenses from Greenland

Greenland has awarded major oil companies like Exxon Mobil (NYSE:XOM), Chevron (NYSE:CVX), Encana (NYSE:ECA) and Husky Energy (TSE:HSE), among others, licenses to explore its offshore and onshore regions for oil and gas.

According to an estimate from a US Geological Survey in 2009, there could be up to 50 billion barrels of oil in Greenland. Even so, that's much lower than prior estimates from the USGS, which have been as high as 160 billion barrels of reserves.

The right conditions are there for the people of Greenland to support the venture, as they want to gain independence from Denmark, which at this time they are a dominion of.

Citizens of Greenland receive over $10,000 each form Denmark at this time, and it's estimated that one good oil field would replace that for the residents, which number about 56,000.

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