Recent experience with onshore oil and gas operations in the Mackenzie Delta, NWT

Hydrocarbon deposits in the Beaufort Sea and Mackenzie Delta indicate mean discovered gas reserves of 5 trillion cubic feet of natural gas, 67 million barrels of condensate, and 247 million barrels of oil in fields located onshore. There may be even bigger undiscovered reserves that could be proven by a surge in drilling likely to occur in this region within the next few years. There are a number of characteristics of this area that appeal to the oil and gas industry over and above the discovered and undiscovered reserves. There is a local aboriginal group with a settled land claim, clear and reasonable rules for access, a business-like approach to development and a sophisicated understanding of the oil and gas industry. There is reasonable access by road, commercial air service, rail and barge by Hay river or sea with an excellent harbour at Tuktoyaktuk. Local contractors and labour with applicable skills and good equipment are available. The Inuvialuit Petroleum Corp. and its partners Altagas Services Inc. and Enbridge Inc. completed a project to supply the town of Inuvik with natural gas for electricity generation and local distribution. This project is a small example of the physical, economic and regulatory environments that the oil industry will face with the undertaking of larger projects. Aspects of the region described include: the Inuvialuit, recent experience, logistics, regulatory environment, project approvels, environmental, and specific observations