With inflation at ~6%/year, am guessing that Buffett/Munger think oil prices will be significantly higher than $60 a barrel in 2027 and beyond.

Buffett stated that his support of Oxy was a bet on oil prices. But as long as he doesn't acquire the company he can change that bet (and Chevron) if circumstances change. I'm in the camp that doesn't want to see them acquire Oxy for just this reason. And don't buy the Oxy story on DAC. They've got a long row to hoe before that becomes a reality - in spite of their projections.

I don't see $60 WTI as an economic threat to fear. Without checking, I believe XOM has stated that it would have a 10% ROCE on Permian investments at $35 prices. Both Chevron and Oxy own the mineral rights to a lot of their Permian properties - i.e., don't have to pay landowner royalties. So they should be in comparable or better shape. They'll all do fine at $60 prices. Higher is nicer but .....

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