Now that I think about it, Canada actually has a very low population compared to the amount of land they have.
Let's put it this way, countries that are less than half the geographical size of one of our provinces (like Japan, South Korea, The Philippines) all have populations larger than Canada's.
http://en.wikipedia.org/wiki/List_of_countries_by_populationHell, even the state of California has a larger population than the country of Canada.

How can Canada protect its claimed northern lands and borders?
Like Asmo said, it gets friggin' cold up there, so fortunately it's not that tempting of a target (at least from a military standpoint) to begin with.

We also have the series of NORAD stations that we jointly run with the US. Lately though we've just been using it to track Santa Claus.

You guys also have a force known as the Canadian Rangers (i think?) that patrol and survey such areas to support the conventional Canadian Forces.
We do. They all dress in red, and they don't have zords.
http://en.wikipedia.org/wiki/Canadian_rangersCanada has oil and water. Which resource is more vital to Canada's future?
I would guess that both are equally important. Water is obviously important not only for being able to live (e.g. drinking water, supporting freshwater fish and other wildlife/livestock), but also because of Canada's massive hydro-electric industry (i.e. using water currents to generate electricity), on which most Canadians rely. Oil is obviously important due to it's industrial applications.
Canada has both the largest supply of fresh water on the globe and the worlds longest ocean coastlines. What are Canadians doing to insure that precious public asset?
Protecting the coastlines has definitely been a big issue in Canada because of our fishing industry. Quite often you can turn on the news here and hear a story about the stink being cause because Asian fishing boats are fishing too close to the B.C. coast or European boats are doing the same on the eastern coast. Like with the military, it's a topic that gets a fair bit of political debate (though maybe moreso amongst the provincial governments than in the federal one).
In terms of actual actions being taken to protect them...probably not enough, I'm sad to say.
Why does all Canadian oil flow south to the USA from Alberta,and only THEN to eastern Canada?
Well, a fairly substantial percentage of Canada's oil is found in northern Alberta (a bit further north from daigong's house). They can't really pump it north because: a) it would get cold and start to run like thick molasses, potentially freezing and wrecking the pipelines, which could cause an overland oil spill, and b) the refining plants (not to mention the demand for oil) are all pretty much located in more southern/eastern locations.
I just realized Canada has absolutely no cross country oil pipelines? Or am I wrong? If I'm right though, what's up with that?
If there isn't one already, there are acutally companies that are currently trying to establish something along those lines, if I'm not mistaken. Geographically-speaking, establishing a cross-country pipeline isn't exactly easy, given that the parts of the country it would have to go through, particularly as you head through the "middle" of the country, are heavily covered with dense rock (similar to bedrock). For a long time the costs of establishing something like this were just too much, and not really worth it when you considered the alternate option of transporting it by train or by semi-truck.
Are Canadians on route to being swallowed up by the USA for Canada's vast resources?
I know people that have been worried about that ever since Canada signed the first Free-Trade Agreement with the U.S. back in the late 1980's.