INUVIK - The question of whether the Mackenzie Gas Project will go ahead has become the prime water cooler discussion for members of industry, government and particularly communities along the proposed pipeline route.

In the next three editions of the Oil and Gas Report, starting this week, News/North will canvass the opinions of a wide variety of participants and ask them to place themselves in one of two camps.

In the first camp are those who remain convinced that, no matter the challenges, the Mackenzie Gas Project will see the light of the day.

In the second camp are those who are more skeptical of the project's chances and wonder if indeed Northerners will ever see the day when natural gas from the Mackenzie Delta flows south.

This week's edition features Bob McLeod, the GNWT's minister of Industry, Tourism and Investment.

Bob McLeod

I guess I would consider myself in that camp that says the pipeline will be built; it's just a matter of time. We've never been closer to having a pipeline built before.

News/North: "Never been closer." Are there recent developments that cause you to think that?

McLeod: A number of things. One, primarily, we're very close to having the regulatory review process concluded. The negotiations for the final access and benefit agreements with (the Deh Cho First Nations) have resumed....

We have confirmed many times that the demand for energy will continue to grow and that all forms will be required, including natural gas from both the Mackenzie pipeline and the Alaska pipeline. Everybody I talk to is of the same view.

N/N: Who will decide whether the project happens?

BM: The federal government.

N/N: But the proponents will, won't they? At the end of the day, they will decide whether to construct the pipeline or not.

BM: Everybody cheered when the Joint Review Panel made the recommendations because they thought, "Well, that was it." Everybody realized that the main outstanding item is the federal fiscal framework. That's still the major stumbling block....

If you look at the United States, they have loan guarantees that provide up to $18 billion (for proponents of the Alaska Pipeline Project). I'm not saying that we need the same thing in Canada, but the fiscal arrangements have to be in place so that the proponents will see fit to make the go-ahead decision on construction.

N/N: Why should the Mackenzie Gas Project be built over other Canadian energy projects?

BM: For our part, in the NWT, it will really boost our economy. The Conference Board of Canada has put out a report indicating that there's not much on the horizon for the Northwest Territories until such time as the Mackenzie Gas pipeline project comes forward.

We see it as a basin-opening project whereby, in addition to the benefits of the construction phase of the pipeline, there will be the very significant benefits of exploration that will emanate from the pipeline. And if you look at the oil and gas potential, people are very pleased that the diamond industry has been here at a very opportune time, but when you look at the oil and gas potential, it's probably $400 billion compared to probably $40 billion for the diamond sector.

For Canada, there will be significant benefits to southern provinces. Ontario - their GDP will increase by $5.1 billion. Alberta's GDP will increase by about $9.9 billion. The federal government's coffers will increase by $10 billion in increased incomes taxes. On top of that, there will be a significant reduction in the emission of greenhouse gases.

If I was predicting the future, I'd say there will be significant change to using natural gas. All the utilities will switch to natural gas. I fully expect the United States will switch their transportation sector to natural gas.

We welcome your opinions. Click here to e-mail a letter to the editor.