Natural resources and Agriculture play a key role in terms of economic wealth and supply chain management. It is important for all levels of government to work together as part of developing effective strategy that will maximize the development of both natural resources and the agriculture sector.

1. Canada Natural Resources –
Analysis and Commentary
PAUL YOUNG CPA CGA
JUNE 13, 2020

2. Paul Young - Bio
• CPA, CGA
• Academia (PF1, FA4 and MS2)
• SME – Risk Management
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Emerging Technology
• SME – Financial Solutions
• SME – Business Process Change
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Agenda
 4th Qtr. – Canada
 Oil Rigs and Oil Prices – May 2020
 Metals mining
 Ag Sector
 Forestry Sector
 GDP and Natural Resources
 Additional Training
 Government Policies
 Stock Market and Commodity Prices
 Gerald Butts and Oil
 Justin Trudeau and Resourcefulness
 Wages

4. Natural Resources /
Canada
Source -
https://www150.statcan.gc.ca
/n1/daily-
quotidien/200414/dq200414
a-eng.pdf

5. Oil Prices and Oil Rigs Oil Links -
https://www.slideshare.net/paulyoungcga/
oil-and-gas-sector-whats-happening-
outlook-2020-and-beyond
Oil does not get enough credit when it comes to managing the environment. @gmbutts is anti-oil no matter how much
oil takes care of the environment.
https://www.slideshare.net/paulyoungcga/whats-next-for-oil-energy-market-june-2020
Here is a look at the oil sector. @gmbutts will never discuss all aspects of oil!
@WBrettWilson @GasPriceWizard @emilia_suze

6. Forestry Sector / Sawmills
Source – Stats Canada and BMO
• NAFTA Panel - https://globalnews.ca/news/6977372/nafta-panel-lumber-trade/ - BC loses a ruling
• Lumber prices on the rise - https://www.bnnbloomberg.ca/commodities/video/canadian-lumber-price-surge-driving-
building-prices-in-the-u-s~1331644
• Lumber demands expected to improve in 2020 - https://www.bnnbloomberg.ca/commodities/video/lumber-demand-
expected-to-improve-in-2020-forest-economic-advisors~1889537
• Forest Management Practices - https://www.slideshare.net/paulyoungcga/how-does-the-world-better-protect-its-forests

7. Metals Mining
1. Resources will be driven by demand. It is important for all governments to re-think their natural
resources / mining policies - https://www.pwc.com/gx/en/industries/energy-utilities-
resources/publications/mine.html
2. Mining will continue to push for automation - https://www.globenewswire.com/news-
release/2020/05/22/2037526/0/en/Outlook-on-the-Smart-Mining-Industry-in-North-America-to-
2027-Key-Players-Include-ABB-Alastri-Caterpillar-Among-Others.html
3. Steel Demand and Metals - https://agmetalminer.com/style/market-analysis/
4. Nickel and Platinum to grow due to demand for EV - https://www.mining-journal.com/gold-and-
silver-news/news/1377155/nickel-and-platinum-to-shine-in-2020-says-baml
1. It should be noted that China has great deal of influence over material related to EV
manufacturing
1. Clean Tech - https://www.slideshare.net/paulyoungcga/electrical-vehicles-ev-all-you-
need-to-know-may-2020 (See slide 21)
2. China / Rise - https://www.slideshare.net/paulyoungcga/china-path-to-global-
domination

8. Agricultural sector
Farmers
1. Canada and other countries need to reform their AG policies -
https://www.slideshare.net/paulyoungcga/canada-how-are-farmers-doing-in-
financial-in-canada
2. The economic squeeze on U.S. producers is tightening after six years of decline in
U.S. farm profits, which fell last year to $69.4 billion, half of the $136.1 billion in
2013. Prices of key commodities such as corn and soybeans have declined while the
Trump administration’s immigration crackdown has cut into migrant labor.
Midwestern states were hit with historic floods this spring.
1. The trade war struck another blow, as key importers of U.S. agricultural
products such as China, Canada and Mexico have retaliated against Trump’s
tariffs with duties targeting American farmers. Source -
https://www.industryweek.com/the-economy/article/22027512/farm-
equipment-purchases-plummet-as-trade-war-hits-rural-america

9. GDP
GDP by Sector (Average Growth)
GDP by Sector

10. Natural Resources Sector
 Forestry - https://www.baytoday.ca/coronavirus-covid-19-local-news/canadian-forestry-industry-bracing-for-
brutal-2020-2270373
 Metal Mining- https://www.osler.com/en/resources/regulations/2020/covid-19-s-impact-on-mining
 Vanadium, Lithium and Rare Metals - https://www.spglobal.com/marketintelligence/en/news-insights/latest-
news-headlines/quebec-lithium-mine-s-bankruptcy-flags-canadian-market-obstacles-analysts-say-58533815
or https://www.slideshare.net/paulyoungcga/clean-technology-and-green-economy-canada
 Canada Smelting – smelting/fabrication - https://www.newswire.ca/news-releases/canadians-want-to-seize-
opportunity-in-critical-minerals-847674353.html
 LNG/Natural Gas - https://www.northernsentinel.com/news/despite-covid-19-lng-canada-committed-to-first-
cargo-delivery-by-mid-2020/

11. Government Policies / Legislation
 Anti-pipelines - https://www.cbc.ca/news/canada/british-columbia/pipeline-capacity-poll-1.4979805 or
https://www.nationalobserver.com/2019/01/04/news/pipeline-shortfall-not-only-thing-punishing-canadian-
oilpatch
 Rail shipments and Goods - https://www.cbc.ca/news/politics/tasker-crude-by-rail-eight-fold-increase-1.4842410
 C69 - https://openparliament.ca/bills/42-1/C-69/ “An Act to enact the Impact Assessment Act and the
Canadian Energy Regulator Act, to amend the Navigation Protection Act and to make consequential
amendments to other Act”
 Carbon Taxation - https://www.cbc.ca/news/canada/north/yukon-chamber-mines-carbon-tax-1.4691472
 All levels of government across Canada have made changes to both taxation and regulatory policies
Source - https://www.fraserinstitute.org/studies/annual-survey-of-mining-companies-2017

12. Stock Market and Commodity Prices

13. Gerald Butts and Oil
• Butts did not support Northern
Gateway or East-West
• Keystone stumbling block was Obama
which he did not say in his interviews
• Butts brought in the failed FIT
Policy -
https://www.cbc.ca/news/opinion/
ontario-disaster-architects-
1.3884108
• Butts tweets have been anti-oil
and pro-climate change
• https://ottawasun.com/opinion/let
ters/you-said-it-whats-the-
carbon-tax-problem

14. Justin Trudeau and Natural Resources
 https://www.cbc.ca/news/politics/trudeau-davos-future-look-economy-harper-1.3412182
 https://business.financialpost.com/business/energy/varcoe-oilpatch-in-rebellion-as-ottawa-plows-ahead-on-
bill-c-69/wcm/e5e15cab-b220-45f3-a29a-
ca7290dfa272?utm_medium=Social&utm_source=Facebook&fbclid=IwAR2vsjIYWtPsq0eaNYt-
11WYJhMy80fRWQQD6MNV3b30ISA1u0cNzenCxk8#Echobox=1560516484
 “My predecessor wanted you to know Canada for its resources," Trudeau reminded. "I want you to know
Canadians for our resourcefulness."
 Trudeau misled people back in 2016 about the importance of Natural Resources development was to Canada.
 https://www.slideshare.net/paulyoungcga/2019-election-management-of-natural-resources-canada-june-
2019
 FYI
 It is never about jobs, but votes!

15. Wages

16. Power Production / Utility Sector
Source -
https://www.slideshare.net/paulyoungcga/electricit
y-generation-co2-and-environmental-impact-
whats-next

17. Training and Development
 If you like to learn more
about trade and/or other
subjects as part of your
professional learning and
development then feel free
to review my material on
https://www.udemy.com/
(search Paul Young CPA
CGA)
 These subjects address
how to fixed issues with
housing and/or systemic
issues related to economy
including government
policies

18. Corporate Taxation
Here is what I told a Liberal?
You appear to be anti-business as such likely will not read my posts, but will take the NDP at their word when it comes to taxation, right?
 Corporation pay carbon tax, excise taxes, payroll taxes, royalties, corporate income tax - https://www.slideshare.net/paulyoungcga/how-corporate-and-business-taxation-flows-to-
government
 Mutual funds and pension funds invest in corporations - https://www.investopedia.com/university/mutualfunds/mutualfunds.asp
 Top 1% - https://www.slideshare.net/paulyoungcga/2019-election-top-1-wealthiest-canada-june-2019
 Many corporations do not get direct business subsidies - https://www.investopedia.com/articles/basics/11/introduction-to-government-subsidies.asp (Direct subsidies are loans,
grants, etc.)
 Tax deductions are not subsidies. Corporations have to qualified for tax deductions - https://taxfoundation.org/corporate-tax-rates-around-world-2018/ - Countries need to be
competitive with all their tax, environmental and other government policies.
 There are rules around income movement it is called transfer pricing. The rules have change based on BEPS - https://www.osler.com/en/resources/regulations/2018/canada-begins-
ratification-process-for-multilateral-tax-convention-to-implement-beps
 You want to fixed income taxation then go after the tax code - https://www.brookings.edu/research/a-golden-opportunity-to-simplify-the-tax-system-options-for-reforming-a-
complex-tax-code/
 Governments around the world need to go after tax havens - https://medium.com/@nslewis/tax-havens-make-gdp-screwy-c241430447d9 - Liberals refused to go after tax havens as
the panama papers have shown there are liberals with holdings in tax havens - https://www.cbc.ca/news/business/stephen-bronfman-trudeau-paradise-papers-1.4382511
 Trudeau and Morneau have trust funds. Maybe it is time to go after trust funds - https://www.advisor.ca/tax/tax-news/cra-to-demand-more-info-on-trusts-beginning-in-2021/
 Clean technology gets direct subsidies and you do not mention that issue, why? https://business.financialpost.com/commodities/energy/total-destruction-of-the-market-investments-
in-clean-tech-cool-off-as-subsidies-ends - I guess you are ok with subsidizing power under the FIT agreement - https://torontosun.com/news/provincial/ontario-lost-up-to-1-2-
billion-selling-clean-energy-at-a-loss-engineers
 Many # companies are just an easy way for people to set up a small business. Small business has already told the Liberals their tax policies are harming them, and you say nothing,
why? https://www.slideshare.net/paulyoungcga/small-business-under-attack-by-government-canada

19. What needs to
happen
 Trudeau team needs to get the softwood lumber dispute
resolved and look at ways to expand lumber exports to CETA
and TPP -
https://www.bnnbloomberg.ca/economics/video/overall-impact-
of-softwood-lumber-dispute-minimal-for-canada-
economist~1108540
 Trudeau’s team has too many radicals that are putting their own
interest over what is best for Canada. NR development will lag
until there is change in government
 There lacks integrated strategy between all levels of government
to get projects off the ground
 Canada needs to revisit its taxation and regulatory policies
 Canada needs to refocus on their supply chain management
 Source - https://www.slideshare.net/paulyoungcga/how-best-to-
reshore-supply-chains
 More emphasis on the skill trades and engineering area as part
of supporting the natural resources sector.
 Better partnering with NR companies as part of leaving a legacy
around for communities, i.e. roads, housing, water, etc.
 https://www.slideshare.net/paulyoungcga/what-is-going-
on-with-canadas-competitiveness