The Resource Advantage Canada Still Has Over Everyone Else

Learn how Canada’s rich resources and stable environment position it as a key player in global trade dynamics.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

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Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published February 20, 4:30 pm EST

Canada is at the cusp of a new world trade order in which countries are diversifying their suppliers, especially for critical resources. Trade protectionism, wars, and geopolitical tensions have created the need for stable trade partners. With tensions around the United States’ attempt to acquire Greenland, the Venezuela oil crisis, and war-like situations between the US and Iran, minerals, oil, and gas have become the center point of trade issues. Canada is at an advantageous position, with its rich energy and mineral resources and stable political environment.

Map of Canada showing connectivity — Source: Getty Images

Canada’s resource advantage over others

Canada is an export-led economy, with exports contributing 32.4% to the gross domestic product (GDP) in 2024, as per World Bank data. The country is significantly dependent on the United States, which accounts for 73.5% of its total exports. Canada saw a shift in exports, as Canadian exports to the US markets fell and those to non-U.S. markets rose in 2025.

Trump tariffs have encouraged Canada to diversify its non-US exports. It is looking to leverage its resource advantage and stable political environment to establish new trade agreements. Canada is the world’s

Second-largest uranium producer
Fourth-largest oil and gold producer
Fifth-largest natural gas producer

However, most of the oil is landlocked in Alberta and Saskatchewan, which have limited offshore export potential. They are well connected through pipelines to the United States. Canadian Prime Minister Mark Carney is looking at establishing trade deals with China and India to export oil, natural gas, and uranium.

Canada’s biggest roadblock is the lack of offshore infrastructure that limits its export potential. Take the case of the Trans-Mountain Expansion Project (TMX), which was originally announced in 2013. Construction began in 2019, and the pipeline came online in May 2024. The government is now investing in the trade and transportation sector and aims to double non-US exports.

These infrastructure projects could help Canadian energy and mining companies unlock new export capacity and get better pricing terms. It is a good time to invest in resource stocks for the long term, as they could be good dividend payers in the long term.

Stocks to benefit from Canada’s resource advantage

The key beneficiaries of Canada’s resource exports could be Cameco (TSX: CCO), Canadian Natural Resources (TSX: CNQ), Tourmaline Oil, Lundin Gold, and Suncor Energy. All of them have some of the largest resource reserves and the lowest production costs. This cost advantage could help them stay competitive in global markets.

Cameco

Cameco is the largest producer of uranium in Canada, having mines in Canada, the US, Australia, and Kazakhstan. It not only mines uranium but refines it into uranium fuel and provides operations and maintenance of nuclear reactors. The stock jumped more than 50% in December 2025 and January 2026 after the company partnered with Brookfield Asset Management and the US government to deploy Westinghouse nuclear reactor technologies in the US and abroad. The company’s strategy is to build long-term contracts with base-escalation pricing and market-related pricing mechanisms. This helps it benefit from rising commodity prices and protect it from downside.

Canadian Natural Resources

Canadian Natural Resources has the largest oil sands reserves in Canada and a production cost of mid-$40/barrel. Its low maintenance, slow-depleting resources, and diversified portfolio of crude, synthetic oil, and liquified natural gas (LNG) give it flexibility to adjust product mix to commodity prices. The energy producer is acquiring more oil and gas reserves.

Canadian Natural Resources is a dividend king, with a 25-year history of growing dividends at a 21% average annual rate. This shows its strong balance sheet and financial discipline to navigate commodity price volatility.

Other stocks

Lundin Gold is not the largest gold miner, but it has been growing its production rapidly. Among all Canadian gold miners, it has a lower all-in-sustaining costs (AISC). It will benefit from increasing gold exports and rising gold prices.

Tourmaline Oil has large natural gas reserves in Alberta and has seen an increase in transportation costs as it sells more LNG outside Alberta. It could benefit from the increasing demand for LNG. Similarly, Suncor Energy’s integrated oil business could make it a beneficiary if oil exports diversify, as it could get a better price for its oil in non-US markets.