Remarks – Sahtu Exploration Dinner - Nov. 26, 2012

Ministers' Statements and Speeches

I would like to thank President Chris Buist of the Norman Wells Chamber of Commerce for inviting me to attend the Sahtu Shale Oil Industry update. It is always a pleasure to be in the Sahtu Region. 

It is the Sahtu that embodies for me how huge our Territory's potential for development is – and what a difference we can make in our communities if NWT residents are beneficiaries in the development of this incredible resource wealth. There are two reasons why I say this: first the potential for oil and gas development in this region is immense.  Second – and more important – is the spirit of collaboration, partnership and forthrightness – with which we are addressing this potential – and the opportunities that it will present.

I had an opportunity this afternoon to fly over the various parcels of land that are being explored along the west side of the Mackenzie River - and saw firsthand some of the activity that is taking place. It was a truly amazing trip. It is spectacular country -  the Mackenzie and Franklin mountains together with the Mackenzie River always provide a spectacular backdrop for our visits in Norman Wells - and in this region.

I was equally impressed with the sheer enormity of the opportunity and economic potential that was represented by the exploration parcels we were looking at. 13 parcels of land.  Billions of barrels of potential…. So much so that it has refocused the spotlight of Canada’s oil and gas industry on our territory and the opportunities and challenges that exist in our backyard. 

This coming January the CANOL Shale Oil play will be featured on the Agenda of the Shale Oil and Gas Conference that is being held in Calgary - and also at the Arctic Oil and Gas Conference that I will be speaking at in Calgary in March. The Government of the NWT recognizes that development of the CANOL Shale Oil Project will benefit all residents of the NWT and has the potential to be one of the leading economic development projects in the NWT for many years to come.

Our Government welcomes development provided it can occur in a respectful, environmentally responsible and sustainable manner. The regulatory system is part of this process – and serves to ensure and protect this commitment.  Government, Industry, business and the resident of the Sahtu have a common purpose here - to advance development on terms that can be determine together and mutually beneficial; and to move forward in a way that fits our collective goals, objectives and priorities – and is mindful of our future.

We can do that. 

In the short term, we are anticipating upwards of a $100 million in investment here this winter.  To my understanding, 4 wells, some significant infrastructure development and ongoing scientific data gathering. That translates into about 350 jobs in our communities and very significant spending and economic spin offs for the local economy.

In the long term, it is vital that communications between industry and local Sahtu leadership and Aboriginal organizations continues to be honest, open and two sided when it comes to the Canol Shale Oil play and hydraulic fracturing technology.

ITI is working with industry representatives and our federal colleagues to promote an unbiased and informed understanding of shale oil development in our Assembly, to our community leadership and among our many stakeholders.  We are also providing residents of the Sahtu and the NWT with the opportunity to effectively engage in the debate and decision making about their future and the potential of shale oil development in the North.

Next week there will be another fracking tour that will involve over a dozen community representatives from Tulita and I am pleased to say that ITI is helping to fund this fracking tour along with industry

It is very telling to look around the room tonight – and to recognize the level of interest that exists in petroleum development for this region - and what that implies about the opportunities and economic development that it can bring for the Sahtu.

It is a credit to all of you here tonight that every time I come to the Sahtu, there is an overwhelming feeling that we can “do this right”.

I am confident that with the resources available here in the Sahtu – and with the partnership and collaboration that is so evident here - we can advance a sustainable Shale Oil project that promotes economic self-sufficiency for the communities, businesses, and people of the Sahtu through the responsible development of oil and gas resources here.

At the Department of ITI – this is the business that we are in.

Thank You