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Energy resources in the Northwest Territories (NWT) include hydropower, crude oil and natural gas. Electricity in the Northwest Territories is generated from hydropower, diesel and natural gas.
In 2008, oil and natural gas products accounted for 5.2 per cent of the Northwest Territories gross domestic product.
In 2008, the Government of Canada received just over $30 million in royalties from Northwest Territories oil and gas production.
Oil and natural gas products accounted for $683 million of the Northwest Territories shipments in 2008.
Energy and utilities employ 290 people in the Northwest Territories.
Discover the key energy facts about Northwest Territories.
By the numbers (284KB PDF)
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Crude Oil
Crude oil reserves in the Northwest Territories and Arctic Offshore could amount to 1.576 billion barrels. Ultimate potential of the Western Arctic for crude oil is estimated around 9.2 billion barrels.
Only two fields were producing oil in the NWT by the end of 2008: the Norman Wells oil field in the Central Mackenzie Valley and the Cameron Hills field southwest of Hay River in the Southern Northwest Territories.
Developed crude oil reserves for Yukon and Northwest Territories combined total 363.1 million barrels.
The Norman Wells oil field discovered in 1920 was fully developed in the early 1980s and has produced continuously since 1985. The field has produced 250.9 million barrels by the end of 2008 at an average daily rate of 15,400 barrels per day over the course of the years.
The Cameron Hills field has produced 24.4 billion cubic feet of gas and 1.9 million barrels of oil by the end of 2008 over a producing life of seven years.
In 2008, crude oil accounted for approximately 94% of the oil and gas shipments in the NWT.
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Natural Gas
Most of the Northwest Territories’ natural gas reserves underlie the Mackenzie Delta and Beaufort Sea. Discovered natural gas reserves in the Northwest Territories and Arctic Offshore have been estimated at 16.4 trillion cubic feet. Ultimate potential of natural gas resources in the Western Arctic have been estimated at 84 trillion cubic feet.
Only two fields were producing natural gas in the NWT by the end of 2008: the Ikhil gas field on the Mackenzie Delta and the Cameron Hills field southwest of Hay River in the Southern Northwest Territories.
To the end of 2008, the Ikhil field has produced 5.02 billion cubic feet of natural gas over 10 years of production.
The Cameron Hills field has produced 24.4 billion cubic feet of natural gas by the end of 2008 over a producing life of seven years.
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Natural Gas Pipeline
The proposed 1,220 kilometre Mackenzie Gas pipeline system would be built along the Mackenzie Valley and would link northern natural gas fields to southern markets. This pipeline would connect with an existing natural gas pipeline system in northwest Alberta.
The Mackenzie Gas Project is forecast to contribute $86.3 billion to the Canadian economy; this includes $9.9 billion to Alberta’s economy, $5.1 billion to Ontario’s economy and $6.7 billion to the NWT’s economy.
The Mackenzie Gas Project will create jobs for a total of 208,822 Canadians over the course of this project.
Crude Oil Pipelines
The Enbridge pipeline has been in operation since 1985 and extends approximately 870 kilometres between Norman Wells, Northwest Territories and Zama, Alberta.
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Hydro Power
Hydro Power is one of the Northwest Territories main energy sources. In 2008 it accounted for 33% of the territories’ overall power generation including both industrial and utility generation
The Northwest Territories currently has six hydroelectricity generating stations: Bluefish, Snare Rapids, Snare Falls, Snare Cascade, Snare Forks, and Taltson.
These six locations have a total installed capacity of 54 megawatts.
There is potential for 11,500 megawatts of hydro power in the Northwest Territories but less than 0.5% of this is developed.
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Thermal Electricity Generation
There are 25 diesel generating facilities in the Northwest Territories with a total installed capacity of 106.8 megawatts.
The territory also has two natural gas fired generating stations operating in Norman Wells and Inuvik.
