Newfoundland and Labrador
Newfoundland's offshore oil (4% of Canadian production) replaced collapsed cod fishery while Muskrat Falls' $13B cost overrun created fiscal crisis for 530,000 residents.
Newfoundland and Labrador exists at the edge of North American settlement, its isolation creating distinctive culture and economy. The 1992 cod moratorium ended 500 years of fishing that defined the province's identity, forcing painful adaptation toward offshore oil extraction, mining, and ocean technology. The four offshore developments (Hibernia, Terra Nova, White Rose, Hebron) now provide roughly 4% of Canadian oil production—dramatic for a province of 530,000.
Labrador's interior contains mineral wealth that isolation historically protected from exploitation. The iron ore mines around Labrador City and Wabush ship product via Quebec; the Voisey's Bay nickel mine adds diversification. The Muskrat Falls hydroelectric project—plagued by cost overruns that doubled initial estimates to $13 billion—created fiscal crisis but will eventually provide clean energy for decades. Churchill Falls power, sold to Quebec under a controversial 1969 contract at fixed prices, represents both resource wealth and negotiating failure.
Population decline threatens viability. Young people leave for opportunities elsewhere; outports (small coastal communities) empty as services concentrate. The province's per-capita debt ranks among Canada's highest, limiting fiscal options. Whether offshore oil revenues can fund diversification before reserves deplete—or whether Newfoundland becomes a cautionary tale of resource dependence—remains uncertain.