In a report, Capital Economics analyst David Oxley noted that U.S. oil companies may be hesitant to return to Venezuela given their past experience with asset expropriation. In addition, low oil prices resulting from ample global supply also pose a challenge.Oxley noted that even if the political environment becomes more predictable, the business case for significantly increasing drilling activity in Venezuela remains far from compelling in a world already awash with oil—especially given the extremely high estimated costs of extracting Venezuela’s “heavy oil” reserves.The situation in Venezuela further highlights the tension between President Donald Trump’s desire for cheap oil and the high oil prices necessary for oil companies to achieve the returns they need.