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No, it is because the tar sands have made Canada into a massive oil producer
Yeah, kinda, and it's a fairly unique source of oil at that. From my understanding extraction and refinement is initially considerably more expensive than than most other sources of crude, but that's mainly due to the high upfront costs. The upside is that there's also very little falloff of production, so it'll keep producing for a long period without the need to churn through new drilling sites.
Atwood drew from reality when she wrote the handmaids tale, it’s only become more and more intensified since she wrote it. And the US is gonna annex Canada over my dead body (and that of 40 million others). They could definitely try to annex us but they would never be able to hold Canada.