A country’s property rights in foreign oil assets are likely to diminish as the oil price rises. Even if the foreign company does not start squeezing out its minority owners, its government will be tempted to expropriate foreign owners through windfall taxes (if the government is sophisticated) or nationalization (if it is unsophisticated) – especially if its voters feel, with the benefit of hindsight and populist incitement, that the assets were sold too cheaply.