Organizers of an annual petroleum show in Inuvik, N.W.T., are trying to stay upbeat despite gloomy news from the industry, including MGM Energy's postponement of drilling plans as plans for the Mackenzie Valley pipeline remain uncertain.

Attendance at the ninth annual Inuvik Petroleum Show, slated for June 17-18, is expected to be down by 35 per cent this year, organizers say.

"Whereas companies normally may send 10 delegates from one organization, we're seeing maybe five or three," Jackie Challis, tourism coordinator with the Town of Inuvik, told CBC News on Tuesday.

The slumping economy has companies thinking twice about spending thousands of dollars in travel and conference fees.

Then last week, Calgary-based MGM Energy — the only company that was still drilling in the N.W.T.'s Mackenzie Delta region — announced it is postponing future exploration drilling work near Inuvik until the pipeline is approved.

The news delivered a blow to Inuvik businesses that cater to MGM and other exploration companies.

"We're going to have to cut back. We'll have less people up working in Inuvik," said Andre Vermette, the Inuvik base manager for Aklak Canadian Helicopters.

"It's going to be a lot slower for us, there's no question."

Some pilots with Aklak Canadian Helicopters were kept busy this year, working on MGM drill rigs in the Mackenzie Delta.

But even before MGM pulled out of the area, the company had only two helicopters flying regularly -- a contrast to the 20 aircraft that were in the air when exploration in the Delta reached its peak three years ago.

Vermette said the pilots who do not get laid off will still take a hit, because most are paid based on how many hours they are in the air.

"MGM was basically the only oil and gas company that were active in the Mackenzie region," he said.

A decision on whether MGM will resume drilling wells in the Delta will depend in part on the Joint Review Panel's long-awaited environmental and socio-economic review of the Mackenzie pipeline proposal. The independent panel's report is due in December.

Imperial Oil, the main proponent in the Mackenzie pipeline project, will also have to decide whether construction of the $16.2-billion project is still feasible.