One sponsor of the ninth annual Inuvik Petroleum Show, which began Wednesday in Inuvik, N.W.T, says the annual trade show may not make it to 10 years if there is no progress on the proposed Mackenzie Valley natural gas pipeline.

Given the current economic downturn, the number of delegates at the two-day petroleum show dropped about 10 per cent from last year to about 450 people. Sponsorships for the $135,000 event were harder to find this year, as well.

"There's not as much disposable income out there," Inuvik Mayor Derek Lindsay told CBC News on Tuesday.

"All the companies were paring back and we had to do a little bit of struggling work there to get the sponsorships."

The Inuvik Petroleum Show is the biggest event in town, expected to bring $250,000 of extra spending to the local economy this year.

The Town of Inuvik became a sponsor of the show this year, but even then the event's budget still came up short.

Lindsay blamed waning interest in the petroleum show on the Joint Review Panel's delays in completing an environmental and socio-economic impact assessment of the Mackenzie Valley pipeline proposal.

The panel is expected to release its recommendations in December, but pipeline proponents and supporters had hoped it would come sooner.

"I wouldn't go as far to say it's run its course. I'd like to see us do a tenth next year," Lindsay said of the trade show.

"I'm hoping that there's a favourable report at the end of December from the JRP. If not, it could be the last show. You never know."

Lindsay added that his bigger concern is the regulatory delays would doom the pipeline, leaving Inuvik in the dust economically.

Among the approximately 450 delegates who are attending this year's show are oil companies like Slumberger, which has cut back on the number of people they send to the trade show.

"We need to continue our commitment, and it's not like one bad year we just pack up and go home," said Geir Utskot, the company's Arctic manager.

"We, of course, try to reduce the cost of being here a little bit."

The Inuvik Petroleum Show runs through Thursday.