A resource-rich country
Canada has one of the world’s largest supplies of natural resources: forests, fresh water, farmland, fish, minerals, metals and energy. These resources have shaped Canada’s history, settlement and economy and remain a major source of jobs and exports.
The staples story
Historian Harold Innis described Canada’s history through its staples: raw materials sold to other countries.
| Period | Staple | Where |
|---|---|---|
| 1500s–1700s | cod | Atlantic coast and Grand Banks |
| 1600s–1800s | fur (especially beaver) | across the continent via rivers and lakes |
| 1800s | timber | Ottawa Valley, New Brunswick, BC |
| late 1800s–1900s | wheat | Prairies |
| 1900s–today | minerals, oil and gas | Canadian Shield, Alberta, offshore |
Each staple shaped where people settled and how transportation developed, from fur trade routes to railways for wheat.
Canada’s main resource sectors today
| Sector | Highlights | Key regions |
|---|---|---|
| Energy | among the world’s largest oil reserves, mostly in the oil sands; natural gas; uranium | Alberta, Saskatchewan, BC, Newfoundland and Labrador (offshore) |
| Minerals and metals | potash (Canada is a leading producer), gold, nickel, copper, iron ore, diamonds, lithium and other critical minerals | Canadian Shield, Saskatchewan, BC, Northwest Territories |
| Forestry | lumber, pulp and paper | British Columbia, Quebec, Ontario |
| Agriculture | wheat, canola, lentils, beef, dairy, maple syrup | Prairies, Ontario, Quebec |
| Fisheries and seafood | lobster, crab, shrimp, salmon | Atlantic Canada, BC |
| Water and hydroelectricity | about 60% of Canada’s electricity comes from hydro | Quebec, BC, Manitoba, Newfoundland and Labrador |
Resources and the economy
Natural resources make up a significant share of Canada’s GDP (the total value of goods and services produced each year) and a large share of its exports. Energy products, especially crude oil, are among Canada’s biggest exports, and most go to the United States.
But today most Canadians work in service industries. Resource industries are often concentrated in particular regions, so they matter enormously to those communities.
Benefits and challenges
Benefits
- jobs, including well-paid jobs in remote areas
- export earnings and government revenue (royalties and taxes) that pay for public services
- spin-off industries such as engineering, equipment and transportation
Challenges
- Boom and bust: resource prices rise and fall, causing job losses and economic swings. Alberta’s economy, for example, rises and falls with oil prices.
- Environmental impacts: habitat loss, water use, tailings ponds, greenhouse gas emissions.
- Depletion: non-renewable resources run out; renewable ones can be overused, as with the Atlantic cod collapse in the early 1990s.
- Indigenous rights: many resource projects are on Indigenous lands, raising questions of consent, consultation and benefit-sharing.
- Adding value: Canada often exports raw materials and imports finished products; processing more at home could create more jobs.
Sustainable development
Sustainable development means meeting today’s needs without harming the ability of future generations to meet theirs. Approaches include:
- replanting forests and managing them for the long term
- fishing quotas based on science
- cleaner technologies and carbon pricing to reduce emissions
- reclaiming land after mining
- partnerships and revenue-sharing with Indigenous nations
- investing in renewable energy and critical minerals for batteries and clean technology
Debates
Canadians debate questions such as:
- How fast should Canada move away from fossil fuels, and how can workers and communities be supported?
- Who should benefit from resource development?
- How should environmental protection be balanced against economic growth?
Try it yourself
- Map Canada’s main resources and the regions where they are found.
- Choose one resource and trace its journey from extraction to export.
- Research a resource project and present the views of different stakeholders.
- Propose one way to make a resource industry more sustainable.
Quick recap
- Canada is rich in energy, minerals, forests, farmland, fish and water.
- Staples such as cod, fur, timber and wheat shaped Canada’s history.
- Resources are important for exports, regional economies and jobs.
- Challenges include boom-and-bust cycles, environmental impacts and Indigenous rights.
- Sustainable development aims to balance needs today and in the future.