Pelican Acquisition Corp. (NASDAQ: PELI) partner Greenland Energy's incoming CEO Robert Price said global energy markets may be underestimating structural risks to oil supply, citing geopolitical chokepoints such as the Strait of Hormuz and declining long-term investment in conventional production. In an exclusive interview with Benzinga, Price emphasized that frontier exploration efforts, including the company's work in Greenland's Jameson Land Basin, are aimed at addressing future supply constraints rather than short-term price movements, arguing that long-cycle conventional resources will remain essential to maintaining global energy security.
Price's comments come as the energy industry grapples with the dual challenges of energy transition and supply adequacy. He noted that while renewable energy sources are growing, they cannot yet replace the reliability of oil and gas for base-load energy needs. The Strait of Hormuz, a critical chokepoint through which about 20% of global oil passes, remains a geopolitical flashpoint that could disrupt supplies. Meanwhile, underinvestment in new conventional oil fields over the past decade has created a looming supply gap that frontier exploration aims to fill.
Greenland Energy, through its partnership with March GL Company and 80 Mile, is preparing to drill up to two exploration wells in the Jameson Land Basin. March GL will fund 100% of the costs and will earn up to a 70% interest in the basin. The project targets the delineation of sedimentary structures and energy potential in a region that has seen limited drilling due to harsh conditions and high costs. Price stressed that such long-cycle projects are not economically viable at $60 oil but are necessary to prepare for the next supply shock.
The interview, published on Benzinga, can be accessed at https://ibn.fm/vyGU3. Pelican Acquisition Corp., a blank check company, is evaluating potential business combinations and has its newsroom at http://ibn.fm/PELI. Greenland Exploration Limited is a Texas-based entity focused on North American energy assets, while March GL Company is a privately-owned Texas corporation managing field operations for the Jameson Land Basin project, with more information at http://www.MarchGL.com.
Price's warning underscores a growing concern among energy executives that the world is not investing enough in new oil supply to meet future demand, even as the energy transition accelerates. The structural risks he identifies suggest that oil prices could spike significantly in the coming years, making frontier projects like Greenland's Jameson Land Basin increasingly strategic. Investors and policymakers would do well to heed these signals as they navigate the complex landscape of global energy security.
