Lower Energy Intensity Means $100 Oil Only Feels Like $76

(Bloomberg) --

An oil-price spike to $100 wouldn’t feel the same as when crude rose to that level from $75 in 2010 and 2011. Inflation alone means $100 oil today feels more like $86. Add to that, oil is no longer as important an input to production as it was, energy intensity has fallen by about 10%. Together, these influences mean that what felt like $100 oil in 2011 equates to more like $76 today, and the jump up will smart less too, according to research by Bloomberg Economics.

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