Geo's working at a mineral mine Thor but I was, until now, working for a large engineering and construction company whose business is largely tied to the oil sands in Alberta. I'll try to answer as accurately and concisely as possible, though the following explanation will be a simplistic view of a complex area.
The oil sands are the world's 3rd largest oil reserve. The oil is actually mostly bitumen that is caught in sand so much if it is actually open pit mined, though SAGD (Steam Assisted Gravity Drainage) facilites are also operating and becoming more preferred. These entail drilling a series of vertical and horizontal shafts and injecting steam which allows the bitumen to flow and get pulled to the surface without tearing up the landscape. The current production capacity, spread amongst several major production facilities, is about 2.5 Million Barrels/Day with more coming on stream over the next year or so.
Alberta exports most of its product, called diluted bitumen or "dilbit", and refines a fraction of the production locally. The extraction process is relatively expensive, and so is fracking in the US. Both production methods suffer economically in a low oil price environment as we currently have. What makes things worse for Alberta is that we are land locked with limited pipeline capacity so any product we sell as feedstock to, say, refineries in the gulf coast region of the US needs to be discounted to make the product price competitive.
Alberta has not shut in any production at any of the existing facilities so we are continuing to mine and extract product. However many planned expansion projects have been delayed with the major producers electing to not invest capital in developing new leases until the price environment improves. The money that they are spending is on sustaining capital works for their existing facilities, essentially maintenance to keep them going.
I'm not sure why you have characterized the US fracking as "stupid" but the introduction of this method to squeeze more oil has allowed the US to become less dependant on foreign crude and, ironically, contributed to the current oil glut that has depressed prices to a point that is possibly below what can sustain economic production should these low prices continue. True that the method is not without controversy, with concerns over its chemical use potentially contaminating ground water and, more recently, links being made with increased earthquake activity.
So, in summary, we are not "shutting down" current production but new projects are being deferred.