Thread – The unemployment rate within CDN Oil & Gas continues to drop, now at 2.5% (w/ Alberta even lower at 1.8%). This budget season, even if mgmt teams wanted to spend more, finding technical staff is increasingly more difficult, likely capping any large capex plans #yyc #yeg 
/2 There’s been quite the hiring spree over the last couple years, with jobs in the Exploration & Production group rising ~20% since Jan 2020. That said, levels have plateaued now, even while WTI oil and NYMEX natgas prices have increased, showing the difficulty in hiring #oott
/3 The issue is a declining E&P labour force, now down 6% from recent highs, (at 104k vs. 111k last June) and more meaningfully below 2016 levels. Finding qualified geologists / engineers is becoming increasingly challenging
/4 Part of the labour force challenge is a younger generation that is seemingly avoiding Oil & Gas, while an older generation makes up a higher portion. With many having in-the-money stock options now, watch for more YE retirements this Dec #energy
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