SOMBA K'E/YELLOWKNIFE - Ministry of Industry, Tourism and Investment Bob McLeod said his government is very interested in how BP Exploration Company Ltd. and the United States is dealing with the oil spill in the Gulf of Mexico.

The recent oil spill off the coast of Louisiana has sparked fears about a similar event occurring in the NWT's offshore waters. While no companies are currently drilling for oil in the Beaufort Sea, BP Exploration Company Ltd. has designs to do so eventually. Last summer, BP launched its seismic program in the Beaufort Sea from the MV Viking Vision, pictured here. - photo courtesy of BP Exploration Company Ltd.

Gallons of crude oil have been gushing out of an underwater oil well in the gulf for the last two weeks, following the explosion of a BP oil rig on April 20. Eleven workers died in the incident.

"It is very important for us to learn from this incident to see what happened because it will have implications for other offshore developments," McLeod said. "Certainly, our most important consideration is protecting the environment."

He said the spill and how it is handled could have an impact on the NWT's offshore development. He added he told the National Energy Board to delay reviewing the same season relief well capability policy until the incident in the gulf reaches a conclusion. The policy calls for oil and gas companies to drill a relief well in the same season the original well is drilled. This is intended to help control a blowout.

Both BP Exploration Company Ltd. and Imperial Oil are exploring for oil in deep water offshore licences in the Beaufort Sea. Devon Energy Corp., the last company to drill in the Beaufort Sea three years ago, found a giant pool of oil instead of its intended target, natural gas, at a site 130 km north of Inuvik, but it has no immediate plans to develop it.

From now until 2011, Imperial will be returning to the site, located 120 kilometres from the outermost edge of the Mackenzie Delta, to carry out its field data collection program. As for BP, it is expected to continue its seismic campaign on its three offshore exploration licences in the Beaufort Sea, located 180 kilometres northwest of Tuktoyaktuk.

McLeod made the comments following the 2010 Offshore Technology Energy Conference in Houston, Texas, which he attended along with NWT Premier Floyd Roland, and Mackenzie Delta MLA David Krutko.