Dave begins by looking back at the market's reaction to recent geopolitical turmoil and why his team remained cautious while others embraced the prospect of higher oil prices and how the sector's subsequent reset may have created new opportunities for investors.

I think about the last three, four months, probably the hardest three, four months I've had to manage energy money in my career.

And so as you kind of get a little bit of a look back, I remember like the day after the war happened, I went to the Stars and Spurs Gala with Courtney, 1,000, 1,500 people there, lots of CEOs, buddies.

everyone's just like yeah we're back 150 oil like that was kind of the mindset from people as they're all high-fiving and i'm just like the energy guy going like no no like this isn't good man like this could be bad like this could send the globe into a recession like don't high-five me and they're all just like no man like we're gonna make so much money here so you think about that starting point and this chart shows every single oil shock that's happened And you can see it hasn't been good for markets in general, right? And so it hasn't been good for markets.

Mine and Nick's head space the last three, four months has been a lot more of like, let's try and not blow our clients up.

Let's try and manage some risk here.

Let's not try and just 150 and all this stuff.

Next, Dave challenges one of the most common assumptions in energy investing and explains why oil prices are driven by something far more important than inventory levels.