Baffin Bay Geological Survey has estimated that at least 13% of the world's undiscovered oil deposits and 30% of the world's undiscovered gas pockets are located in the Arctic, with the seas around Greenland potentially holding large amounts of natural gas and lesser amounts of crude oil and natural-gas liquids. Accordingly, the Greenland authorities have offered a large number of off-shore concessions for potential hydrocarbon (oil and gas) extraction. The largest concession-areas are located in seas west of Greenland; primarily in Baffin Bay and the Davis Strait, but with several smaller concessions in the Greenland Sea in the east also. Baffin Bay
Davis Strait Davis Strait is underlain by complex geological features of buried grabens (basins) and ridges, probably formed by strike-slip faulting during Paleogene times about 45 million to 62 million years ago. The strike-slip faulting transferred plate-tectonic motions in the Labrador Sea to Baffin Bay. It is the world's broadest strait. With a water depth of between one and two thousand meters the strait is substantially shallower than the Labrador Sea to the south or Baffin Bay to the north. The strait is famous for its fierce tides that can range from , which discouraged many earlier explorers. US Geological Survey has