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The Oil Fields of Norman Wells
The Dene called it "Le Gohlini," for "where the oil is." Early in the 1900's, they led geologists to the site of oil seepages along the riverbank of the lower Mackenzie River, just south of the Arctic Circle. A discovery well, drilled by Imperial Oil in 1919, confirmed the presence of rich oil fields, deposited in the sediments of primeval swamps and ancient shallow seas.

The Waterflood Recovery Method
Secondary oil recovery at Norman Wells is based on the principle that oil is generally lighter than water. Using the "waterflood" method, water is injected into the water zone of some wells to push the oil up to the surface of other wells. Gas is even lighter than the oil and can float on top as a gas cap. Sometimes produced gas is re-injected into the gas cap to push the oil to other wells that have been perforated in the oil zone.

While a small refinery, built in the early 1920's, supplied downriver Mackenzie River communities for half a century, it was not until the 1940's that the Norman Wells oil fields attracted international attention. With its west coast petroleum facilities under threat of Japanese attack, the United States Army oversaw the fast-track construction of a strategically-located oil pipeline from Norman Wells to Whitehorse, Yukon. Completion of the pipeline coincided with the end of the war, and the project was quickly abandoned.

Eighties Energy: In the early 1980's, Imperial Oil brought its Norman Wells operation to full capacity, and oil began flowing through the 870 kilometre Norman Wells Pipeline to Zama, Alberta, en route to other transmission lines in southern Canada. Since most of the oil producing reservoir of Norman Wells lies directly beneath the Mackenzie River, artificial islands have been created in the river to expand the area of the field.

Today, averaging 10 million barrels per year, Norman Wells is Imperial's largest source of conventional crude oil production, and Canada' fourth-largest oil producing field. The fields are expected to remain in continuous, though declining, production until at least 2020.

Natural gas is also produced at Norman Wells, for local use and for re-injection to enhance oil recovery.

Reviving the Mackenzie Valley Pipeline
When vast reserves of natural gas were discovered near in the lower Mackenzie Delta, near the Beaufort Sea, in 1971, a proposed Mackenzie Valley Pipeline became a controversial national issue and the subject of a Canadian federal royal commission. In 1977, Mr. Justice Thomas Berger, citing First Nations land claim and environmental concerns, recommended delay of the pipeline for at least 10 years.

Summer Shipping Lane
Pushing as many as 15 flat-bottomed barges, lashed together in a "train," sturdy Mackenzie River tug boats guide cargoes of boats, snowmobiles, mining and drilling equipment, construction supplies and household goods from Hay River, on Great Slave Lake, all the way to Tuktoyaktuk, on the western coast of the Arctic Ocean. At "Tuk," the barges are uncoupled and moved by ocean-going tugboats to communities in the High Arctic.

The vital Mackenzie River shipping season extends from mid-June to mid-October, delivering heavy freight to remote communities not serviced by year-round roadways. The vast, windy waters of Great Slave Lake, and the shallow channels of the Mackenzie River demand expert navigational skills from the tug boat crews. Canadian Coast Guard vessels also patrol the river, maintaining navigational aids.

A Shared Vision: Twenty-five years and several land claim settlements later, corporate and aboriginal interests in northern natural gas exploitation are converging. A consortium of natural gas producers, along with the Mackenzie Valley Aboriginal Pipeline Corporation, have joined forces to work toward the development of the onshore Taglu, Parsons Lake and Nighintgak gas fields north of Inuvik. Further development of offshore gas fields in the Beaufort Sea is expected to follow.

Investors project that initial production from the onshore fields will be 800 million to 1 billion cubic feet per day, drawing on a combined reserve of 6 trillion cubic feet. (Total estimated Mackenzie Delta - Beaufort Sea reserves are 64 trillion cubic feet.) The gas would be transported through a segmented Mackenzie Valley Pipeline, via Norman Wells, to existing gas pipelines in northwest Alberta.

Lingering Concerns: Although both technical and economic conditions have changed since the original Mackenzie Valley Pipeline was proposed in the 1970's, many territorial, social and environmental issues remain. The 21st century version of the Mackenzie Valley Pipeline is expected to face a lengthy regulatory review and attract renewed controversy.