Energized

During the past 70 years, the U.S. has become better at using less energy to produce more
goods and services. This trend is illustrated by energy intensity, as measured by the ratio of
energy consumption to GDP, which has declined 63% since 1950. This increase in productivity
could potentially help dampen the recent impact of higher oil and gas prices on the U.S.
economy and corporate earnings. With technology helping drive increased domestic energy
production, we believe, higher prices may even potentially support the economy by driving
growth in capital expenditures by energy companies.