Warren Buffett's recent $3.4 Billion investment in Exxon Mobil is most likely a big bet on oil. Despite the unconventional/shale oil boom happening in the US Buffett's partner Charlie Munger thinks that oil prices are headed much higher long term. It's pretty safe to say that Buffett is on the same page with Munger on this issue. Last week the IEA released its Energy Outlook which predicts that the U.S. shale boom will peak in 2020 and we are in for higher oil prices in the future. According to the IEA crude prices will advance to $128 per barrel (in 2012 terms) by 2035. In absolute terms that means that oil prices are going much, much higher. (VIEW LINK)