Today’s jobs report blew away expectations.
Among the bullish job numbers was another strong print for mining: +4,200. Much of that was attributable to support activities: +3,100.
But mining’s other support category — oil and gas extraction —is now at a 24-month streak of sequential increases (although it added a mere 500 jobs in November).
Here’s the graph:
Can this streak continue?
The future of fracking continues to be up for debate. A recent report from Standard and Poor’s Ben Tsocanos suggests the recent growth stall is here to stay.
We expect North American gas production to remain flat to slightly down in the next 12 months but see few catalysts for a pick up in demand, suggesting that prices are likely to remain below $4/mcf in 2013 unless the supply-demand dynamic changes significantly.
But Morgan Stanley’s Hussein Allidina argues there’s now a structural demand shift in natgas demand.
Just gonna have to wait and see.