Reconnaissance seismic reflection data indicate that Canada Basin is a >700,000 sq. km. remnant of the Amerasia Basin of the Arctic Ocean that lies south of the Alpha-Mendeleev Large Igneous Province, which was constructed across the northern part of the Amerasia Basin between about 127 and 89–83.5 Ma. Canada Basin was filled by Early Jurassic to Holocene detritus from the Beaufort–Mackenzie Deltaic System, which drains the northern third of interior North America, with sizable contributions from Alaska and Northwest Canada. The basin contains roughly 5 or 6 million cubic km of sediment. Three fourths or more of this volume generates low amplitude seismic reflections, interpreted to represent hemipelagic deposits, which contain lenses to extensive interbeds of moderate amplitude reflections interpreted to represent unconfined turbidite and amalgamated channel deposits.

Extrapolation from Arctic Alaska and Northwest Canada suggests that three fourths of the section in Canada Basin is correlative with stratigraphic sequences in these areas that contain intervals of hydrocarbon source rocks. In addition, worldwide heat flow averages suggest that about two thirds of Canada Basin lies in the oil or gas windows. Structural, stratigraphic and combined structural and stratigraphic features of local to regional occurrence offer exploration targets in Canada Basin, and at least one of these contains bright spots. However, deep water (to almost 4000 m), remoteness from harbors and markets, and thick accumulations of seasonal to permanent sea ice (until its possible removal by global warming later this century) will require the discovery of very large deposits for commercial success in most parts of Canada Basin.