Dollars back in the Delta
Northern News Services
Inuvik (Mar 05/01) - High gas prices, a more settled political environment and the prospect of a pipeline to carry the gas to hungry southern markets have led to an exponential growth in spending in the Beaufort-Delta.
Spending dropped from the hundreds of millions per year from the mid-70s to late 80s to virtually nothing in the mid-90s, then suddenly dried up when prices crashed.
That all changed in 1999 and 2000 when oil companies committed to spending $750 million on exploration in the region.
The figure is based on commitments made on bids in 1999 and 2000 for exploration rights to parcels of land within the Inuvialuit settlement region released by the federal government and the Inuvialuit.
Companies committed to do $646 million in work on Crown land opened for exploration in 1999 and 2000.
The territorial government estimates another $100 million will be spent exploring land the Inuvialuit released in 2000.
The spending this time around is a little more real than it was in the mid-70s. With the energy crisis scare looming, the government introduced a program to subsidize exploration.
Depending on the 'Canadian content' of a company, the Petroleum Incentive Program paid up to 80 per cent of the costs associated with exploration.
