Resources: Long-term shifts in commodities

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A long list of Canadian towns and cities owe their growth to the resources that could be mined, drilled, chopped, farmed or fished from the surrounding area. Across the nation, commodities have often been synonymous with the towns and cities built around them: coal in Glace Bay, Nova Scotia; wheat in Swift Current, Saskatchewan; nickel in Sudbury, Ontario; oil in Fort McMurray, Alberta; lobster in Shediac, New Brunswick; timber in Prince George, British Columbia; gold in Dawson City, Yukon; or, aluminum in Saguenay-Lac-Saint-Jean, Quebec.

These natural resources funded Canada's development for generations. By providing food and shelter for Canadians, material inputs for Canadian industry, and raw and semi-processed commodities for sale on international markets, they supported Canadians' living standards, and helped to finance international borrowing and the purchase of foreign goods and services, particularly consumer goods and productivity enhancing machinery and equipment.

Today, natural resources continue to play this important role. They account for one-fifth to one-third of Canada's exports and often influence movements in the Canadian dollar ^{Reference 1}. In 2014, as the price per barrel of crude oil ranged from a high of about US$114 to less than US$55, the Canada-US exchange rate fluctuated from over 91 cents to about 86 cents.

Although the overall effects of natural resources on the economy have remained fairly constant over long periods of time, the composition of the natural resource production has changed.

A changing mix of commodities

Chart 1 - Selected resources, by percentage of total production, 1886 to 2014 — Description for Chart 1

Selected resources, by percentage of total production, 1886 to 2014

Year Forestry Energy Agriculture Mining Fishing

**Source**: Statistics Canada, Economic Analysis Division.

1886 17.37 1.95 79.64 1.04 na

1887 15.26 1.94 81.8 1 na

1888 16.29 2.21 80.18 1.32 na

1889 17.23 2.36 78.72 1.68 na

1890 18.94 2.9 76.26 1.9 na

1891 18.92 3.44 75.06 2.57 na

1892 20.34 4.03 73.32 2.32 na

1893 21.2 4.7 71.19 2.91 na

1894 19.46 4.44 73.33 2.77 na

1895 19.16 4.88 71.96 4 na

1896 21.17 5.16 68.28 5.39 na

1897 18.1 4.13 70.35 7.42 na

1898 14.81 3.77 71.54 9.89 na

1899 16.74 4.56 65.39 13.3 na

1900 18.07 5.49 59.79 16.66 na

1901 14.42 4.16 67.29 14.12 na

1902 14.81 4.27 70.17 10.74 na

1903 16.02 4.45 69.51 10.02 na

1904 16.33 4.85 69.81 9.02 na

1905 17.02 4.73 67.57 10.68 na

1906 15.56 4.75 68.7 10.99 na

1907 19.87 5.56 63.99 10.58 na

1908 18.22 5.65 65.79 10.34 na

1909 16.96 4.47 69.79 8.78 na

1910 20.06 5.76 63.59 10.59 na

1911 16.1 3.95 72.21 7.75 na

1912 15.8 5.3 68.45 10.45 na

1913 14.12 5.39 69.94 10.55 na

1914 14.11 4.83 71.68 9.38 na

1915 10.99 3.47 76.73 8.82 na

1916 10.39 3.32 76.37 9.93 na

1917 12.98 3.26 75.02 8.74 na

1918 14.91 3.72 72.89 8.48 na

1919 17.63 3.78 72.98 5.61 na

1920 24.69 4.94 64.99 5.38 na

1921 22.72 6.84 65.61 4.83 na

1922 22.41 6 65.8 5.78 na

1923 24.62 5.87 62.49 7.02 na

1924 24.28 4.52 62.94 8.26 na

1925 21.75 3.78 66.45 8.02 na

1926 23.12 4.44 64.57 7.87 na

1927 21.75 4.32 66.16 7.77 na

1928 21.99 4.32 65.15 8.54 na

1929 26.55 5.21 56.2 12.05 na

1930 28.81 5.95 51.49 13.74 na

1931 29.24 6.79 47.45 16.52 na

1932 22.43 6.71 53.7 17.16 na

1933 19.55 6.45 51.93 22.07 na

1934 21.53 5.44 48.91 24.11 na

1935 20.78 5.54 48.51 25.16 na

1936 21.52 4.89 48.86 24.74 na

1937 24.74 5 41.16 29.1 na

1938 21.53 5.91 41.22 31.34 na

1939 19.32 4.61 48.94 27.13 na

1940 24.05 4.42 44.72 26.81 na

1941 28.32 5.05 35.19 31.44 na

1942 23.03 4.19 47.19 25.59 na

1943 22.94 4.46 49.04 23.56 na

1944 23.42 4.18 53.69 18.71 na

1945 27.2 3.84 47.88 21.08 na

1946 31.86 4.22 49.87 14.05 na

1947 35.94 3.77 45.21 15.09 na

1948 33.84 4.64 45.45 16.08 na

1949 32.11 5.11 45.04 16.51 1.24

1950 32.82 4.99 44.17 16.62 1.39

1951 32.97 4.66 45.86 15.29 1.22

1952 30.7 5.24 47.4 15.46 1.19

1953 32.28 6.79 42.85 16.87 1.21

1954 35.17 9.48 34.28 19.59 1.47

1955 33.07 8.5 35.73 21.6 1.1

1956 32.05 10.11 33.48 23.12 1.25

1957 32.02 11.74 32.07 23.01 1.16

1958 30.97 10.57 37.01 19.93 1.52

1959 30.7 10.41 35.32 22.38 1.19

1960 31.42 10.34 33.74 23.5 1.01

1961 33.4 12.21 29.99 23.2 1.2

1962 30.31 12.5 33.92 22.02 1.25

1963 29.28 12.41 35.78 21.47 1.06

1964 30.35 12.59 33.2 22.75 1.11

1965 29.96 12.59 32.67 23.71 1.08

1966 28.18 12.26 35.8 22.6 1.16

1967 28.73 13.69 30.9 25.65 1.03

1968 29.91 13.85 29.12 26.02 1.1

1969 31.33 14.07 29.17 24.52 0.91

1970 29.4 15.79 25.98 27.83 1.01

1971 28.94 17.45 28.46 24.22 0.93

1972 30 17 30 21 1

1973 28 16 34 19 1

1974 28 22 30 20 1

1975 23 26 31 19 1

1976 26 27 28 18 1

1977 27 31 23 18 1

1978 27 30 25 16 2

1979 27 30 23 17 2

1980 24 31 23 21 1

1981 23 32 24 19 1

1982 21 39 25 14 1

1983 21 41 22 15 1

1984 22 42 19 16 1

1985 22 42 19 15 1

1986 28 31 21 19 2

1987 31 30 17 19 2

1988 31 27 17 23 2

1989 30 26 18 22 2

1990 28 32 19 20 2

1991 27 31 19 21 2

1992 28 30 19 20 2

1993 29 31 20 18 2

1994 31 30 18 19 2

1995 35 25 18 19 2

1996 30 30 20 18 1

1997 31 32 18 18 1

1998 31 29 19 19 1

1999 31 34 17 16 2

2000 26 46 13 14 1

2001 23 47 15 14 1

2002 24 44 14 15 2

2003 19 55 13 13 1

2004 19 54 12 14 1

2005 15 60 10 13 1

2006 14 60 9 17 1

2007 12 57 11 19 1

2008 9 62 12 17 1

2009 9 60 15 16 1

2010 9 59 12 19 1

2011 8 58 14 19 1

2012 8 58 15 18 1

2013 8 60 15 16 1

2014 8 62 14 15 1

Selected resources, by percentage of total production, 1886 to 2014
Year	Forestry	Energy	Agriculture	Mining	Fishing
Source: Statistics Canada, Economic Analysis Division.
1886	17.37	1.95	79.64	1.04	na
1887	15.26	1.94	81.8	1	na
1888	16.29	2.21	80.18	1.32	na
1889	17.23	2.36	78.72	1.68	na
1890	18.94	2.9	76.26	1.9	na
1891	18.92	3.44	75.06	2.57	na
1892	20.34	4.03	73.32	2.32	na
1893	21.2	4.7	71.19	2.91	na
1894	19.46	4.44	73.33	2.77	na
1895	19.16	4.88	71.96	4	na
1896	21.17	5.16	68.28	5.39	na
1897	18.1	4.13	70.35	7.42	na
1898	14.81	3.77	71.54	9.89	na
1899	16.74	4.56	65.39	13.3	na
1900	18.07	5.49	59.79	16.66	na
1901	14.42	4.16	67.29	14.12	na
1902	14.81	4.27	70.17	10.74	na
1903	16.02	4.45	69.51	10.02	na
1904	16.33	4.85	69.81	9.02	na
1905	17.02	4.73	67.57	10.68	na
1906	15.56	4.75	68.7	10.99	na
1907	19.87	5.56	63.99	10.58	na
1908	18.22	5.65	65.79	10.34	na
1909	16.96	4.47	69.79	8.78	na
1910	20.06	5.76	63.59	10.59	na
1911	16.1	3.95	72.21	7.75	na
1912	15.8	5.3	68.45	10.45	na
1913	14.12	5.39	69.94	10.55	na
1914	14.11	4.83	71.68	9.38	na
1915	10.99	3.47	76.73	8.82	na
1916	10.39	3.32	76.37	9.93	na
1917	12.98	3.26	75.02	8.74	na
1918	14.91	3.72	72.89	8.48	na
1919	17.63	3.78	72.98	5.61	na
1920	24.69	4.94	64.99	5.38	na
1921	22.72	6.84	65.61	4.83	na
1922	22.41	6	65.8	5.78	na
1923	24.62	5.87	62.49	7.02	na
1924	24.28	4.52	62.94	8.26	na
1925	21.75	3.78	66.45	8.02	na
1926	23.12	4.44	64.57	7.87	na
1927	21.75	4.32	66.16	7.77	na
1928	21.99	4.32	65.15	8.54	na
1929	26.55	5.21	56.2	12.05	na
1930	28.81	5.95	51.49	13.74	na
1931	29.24	6.79	47.45	16.52	na
1932	22.43	6.71	53.7	17.16	na
1933	19.55	6.45	51.93	22.07	na
1934	21.53	5.44	48.91	24.11	na
1935	20.78	5.54	48.51	25.16	na
1936	21.52	4.89	48.86	24.74	na
1937	24.74	5	41.16	29.1	na
1938	21.53	5.91	41.22	31.34	na
1939	19.32	4.61	48.94	27.13	na
1940	24.05	4.42	44.72	26.81	na
1941	28.32	5.05	35.19	31.44	na
1942	23.03	4.19	47.19	25.59	na
1943	22.94	4.46	49.04	23.56	na
1944	23.42	4.18	53.69	18.71	na
1945	27.2	3.84	47.88	21.08	na
1946	31.86	4.22	49.87	14.05	na
1947	35.94	3.77	45.21	15.09	na
1948	33.84	4.64	45.45	16.08	na
1949	32.11	5.11	45.04	16.51	1.24
1950	32.82	4.99	44.17	16.62	1.39
1951	32.97	4.66	45.86	15.29	1.22
1952	30.7	5.24	47.4	15.46	1.19
1953	32.28	6.79	42.85	16.87	1.21
1954	35.17	9.48	34.28	19.59	1.47
1955	33.07	8.5	35.73	21.6	1.1
1956	32.05	10.11	33.48	23.12	1.25
1957	32.02	11.74	32.07	23.01	1.16
1958	30.97	10.57	37.01	19.93	1.52
1959	30.7	10.41	35.32	22.38	1.19
1960	31.42	10.34	33.74	23.5	1.01
1961	33.4	12.21	29.99	23.2	1.2
1962	30.31	12.5	33.92	22.02	1.25
1963	29.28	12.41	35.78	21.47	1.06
1964	30.35	12.59	33.2	22.75	1.11
1965	29.96	12.59	32.67	23.71	1.08
1966	28.18	12.26	35.8	22.6	1.16
1967	28.73	13.69	30.9	25.65	1.03
1968	29.91	13.85	29.12	26.02	1.1
1969	31.33	14.07	29.17	24.52	0.91
1970	29.4	15.79	25.98	27.83	1.01
1971	28.94	17.45	28.46	24.22	0.93
1972	30	17	30	21	1
1973	28	16	34	19	1
1974	28	22	30	20	1
1975	23	26	31	19	1
1976	26	27	28	18	1
1977	27	31	23	18	1
1978	27	30	25	16	2
1979	27	30	23	17	2
1980	24	31	23	21	1
1981	23	32	24	19	1
1982	21	39	25	14	1
1983	21	41	22	15	1
1984	22	42	19	16	1
1985	22	42	19	15	1
1986	28	31	21	19	2
1987	31	30	17	19	2
1988	31	27	17	23	2
1989	30	26	18	22	2
1990	28	32	19	20	2
1991	27	31	19	21	2
1992	28	30	19	20	2
1993	29	31	20	18	2
1994	31	30	18	19	2
1995	35	25	18	19	2
1996	30	30	20	18	1
1997	31	32	18	18	1
1998	31	29	19	19	1
1999	31	34	17	16	2
2000	26	46	13	14	1
2001	23	47	15	14	1
2002	24	44	14	15	2
2003	19	55	13	13	1
2004	19	54	12	14	1
2005	15	60	10	13	1
2006	14	60	9	17	1
2007	12	57	11	19	1
2008	9	62	12	17	1
2009	9	60	15	16	1
2010	9	59	12	19	1
2011	8	58	14	19	1
2012	8	58	15	18	1
2013	8	60	15	16	1
2014	8	62	14	15	1

Early in Canada's history, agriculture and forestry products dominated. But from the farm and the forest, the focus has moved down to what lies beneath the country in the bedrock below. This progression can be tracked using the 24 commodities that constitute the Bank of Canada commodity price index.

Through time, metals and minerals rose in importance with technological change arising from the introduction of hydro electricity generation, improved rail, road and pipeline networks. Improved mining equipment and drilling techniques increased the knowledge of mineral deposits, improved access to minerals and lowered transportation costs. At the same time, demand changed as new products came to market. For instance, the increased importance of daily newspapers in the United States led to an increasing demand for Canadian newsprint and new electrical distribution networks increased the need for copper.

Rise of oil

Over the 1886 to 1947 period, agriculture was joined by forestry, then mining and, eventually, energy. With the exception of an early advent of the oil industry in Oil Springs, Ontario, oil did not constitute a major component of energy production for Canada until 1947 with oil discoveries in Leduc, Alberta. After the 1973 oil price shock, production of conventional energy sources increased and technological innovation led to development of the oil sands in Canada. The shift towards non-conventional extraction, including the introduction of offshore production in the 1990s, is the latest in a long history of innovation-led changes in the composition of Canada's resource industries. The result is an oil and gas industry concentrated in Alberta and Saskatchewan, but offshore production also makes an important contribution to the economy of Newfoundland and Labrador.

Today, Canada is one of the few developed nations that is a net exporter of energy. In 2010, these exports totalled about 9,700 petajoules, up 3% from 2009. In 2010, Canada exported 63% of its crude oil, 61% of its marketable natural gas, 55% of its coal, and 20% of its refined petroleum products^{Reference 2}.

While energy commodities have increased in importance in the last 40 years, the economic history of Canada has been influenced by our overall resource wealth. Energy is the latest manifestation of the deep Canadian reliance on natural resources as a driver of innovation and economic growth.

Definitions

Bank of Canada commodity price index: The Bank of Canada commodity price index (BCPI) is a chain Fisher price index of the spot or transaction prices in U.S. dollars of 24 commodities produced in Canada and sold in world markets.

24 key commodities found under four industry groupings:

Agriculture and fisheries products: cattle, hogs, wheat, barley, potatoes, canola, corn, finfish and shellfish
Forestry: lumber, pulp, newsprint
Metals and minerals: gold, silver, lead, iron, nickel, copper, aluminium, zinc, potash
Energy: coal, oil, natural gas

References

Reference 1

Amano, Robert A., and Simon van Norden. 1993. "A forecasting equation for the Canada-U.S. dollar exchange rate," in The Exchange Rate and the Economy, 207–265, Ottawa, Bank of Canada.

Return to reference 1 referrer

Reference 1

Statistics Canada. 2013. “Energy supply and demand.” The Daily, December 10.

Return to reference 2 referrer

Date modified:: 2018-05-17

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