Canada is Among the Most Resource-Rich Countries on Earth. We Should Start Acting Like It.

Canada is Among the Most Resource-Rich Countries on Earth. We Should Start Acting Like It.

RECENT POSTS

Canada is one of the richest resource-nations on the planet, it should start acting like it

There is much to say about Canada’s economy, which depends heavily on its energy, forestry, mining, and agriculture sectors.

For starters, Canadians are blessed to have abundant natural resources – fresh water and forests, oil and natural gas, minerals and metals, fish and fertile lands, and plenty of sun and wind. We’ve used these resources to build Canada up into one of the most prosperous nations on earth.

We are fortunate to have access to several of the best post-secondary institutions anywhere, which support our resource economy through programs that provide a highly skilled and diversified workforce. Natural resources account for 21% of our national economy [1], 45% of our manufacturing output [2], and three million jobs nationwide – or about 1 in 7 jobs in Canada [1]. It's critical that we keep these highly productive, prosperity-generating industries well-supplied with talent, and our universities do a superb job of that.

Overall, exports support 1 in 6 jobs in Canada [6] and account for about 20%, or one-fifth of our economy [7]. Natural resources play a huge part in our export-based economy, accounting for about 50% of our nation’s total merchandise exports every year [1].

More than 900 communities across our great nation are economically reliant on at least one of the resource sectors. Over 600 of these communities are either significantly or highly reliant on at least one of these industries [3].

Many Indigenous communities are getting involved in resource development as they look to these projects as a means of economic reconciliation. Cedar LNG and the Coastal GasLink pipeline are two great examples of how First Nations are becoming owners of projects, helping to generate long-term revenues for their people and build up their communities. As of 2021, nearly 50,000 Indigenous peoples (upstream and downstream) worked in Canada’s natural resource industries, up from about 47,000 in 2017 [8]. Furthermore, First Nations earn much higher wages working in the oil and gas sector ($140,400 vs $51,120 avg.), nearly twice as much in mining ($93,600), and above average in forestry ($56,100).

The opportunities afforded by natural resources for Indigenous and non-Indigenous communities right across this country are life-changing.

But the news isn’t all good.

Since 2015, Canada has seen about $670 billion in cancelled or suspended natural resource projects. Additionally, our most prominent financial institutions, including the Bank of Canada, are sounding the alarm on labour productivity, saying if we don’t correct course, we risk a continued drop in living standards, worsening wage stagnation, and a deterioration in public services [4].

Canada’s natural resource sector is an absolute powerhouse for labour productivity. The oil and gas extraction sector, for example, has an average of $356 of gross domestic product (GDP) per hour worked and $94 per hour for its workforce. That compares to about $70 GDP/hour and $45/hour worked avg. for all Canadian industries.

So, it only makes sense that when policymakers are concerned with economic performance and deteriorating living standards, one of the best steps we could take is to support the development of our energy, forestry, mining, and agriculture sectors.

But there’s more. Canada has struggled to complete major natural resource projects. Permitting delays, regulatory uncertainty, and high initial costs have deterred investment. Our country has ambiguous and seemingly random permitting approval regimes that cast doubt for potential investors [5].

It is time that we stop shying away from the development of our natural resources and start embracing the fact that they play an irreplaceable role in our economic fortunes. We must streamline our regulatory processes to make them simpler and more expeditious, helping to bring back investor confidence by making project approvals more predictable and less burdensome.

Global demand for our energy, forestry, mining, and agriculture products is only growing. The world needs more Canadian-made oil, natural gas, food, lumber, metals, and everything in between, which would benefit our families here at home while positioning our country to play a more prominent role in resource security abroad.

To secure Canada's economic future, it is crucial to recognize and support the vital role of the natural resources sector. By embracing the development of our resource wealth, we can foster long-term prosperity, create jobs, support our social programs, boost our standard of living, and enhance the well-being of Canadians and Indigenous peoples from coast to coast to coast. It’s a win-win-win-win-win across the board.

Canada is one of the most resource-rich countries on Earth. For the sake of Canadian families, it’s time we start acting like it.

SOURCES:

1 – https://chamber.ca/news/investing-in-natural-resources-sector-a-solution-to-canadas-productivity-problem-report-says/

2 – https://macdonaldlaurier.ca/canadas-resource-sector-protecting-the-golden-goose-philip-cross-jack-mintz-paper/

3 – https://natural-resources.canada.ca/sites/nrcan/files/emmc/pdf/NRCan_Key_Facts_Figures_Update_EN-2022.pdf

4 - https://economics.td.com/ca-productivity-bad-to-worse

5 - https://www.northernontariobusiness.com/industry-news/mining/canada-is-struggling-to-complete-large-natural-resources-projects-says-cd-howe-report-9171172

6 - https://www.bankofcanada.ca/2018/09/trading-up/

7 - National Bank of Canada - Monthly Economic Monitor, December 2024/January 2025 - https://www.nbc.ca/content/dam/bnc/taux-analyses/analyse-eco/mensuel/monthly-economic-monitor-canada.pdf

8 - https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3610065301