Chevron and Shell to Sign Agreements in Venezuela
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SHEL?
Source: Yahoo Finance
- Agreement Signing: Chevron and Shell are set to sign agreements concerning oil and gas sectors in Venezuela, indicating a strategic collaboration that may enhance their market positions in Latin America.
- Market Potential: Venezuela's abundant oil resources present new investment opportunities for both companies, potentially boosting their competitiveness in the global energy market.
- Policy Environment: With the Venezuelan government opening up to foreign investment, this collaboration could facilitate increased foreign capital inflow, improving local economic conditions and enhancing energy production capabilities.
- Long-term Strategy: This partnership represents not only a short-term business move but also a significant step for both companies in positioning themselves for sustainable development amid the global energy transition.
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Analyst Views on SHEL
Wall Street analysts forecast SHEL stock price to fall
10 Analyst Rating
5 Buy
5 Hold
0 Sell
Moderate Buy
Current: 92.210
Low
41.75
Averages
74.27
High
91.00
Current: 92.210
Low
41.75
Averages
74.27
High
91.00
About SHEL
Shell plc is an international energy company engaged in the principal aspects of the energy and petrochemical industries. The Company's segments include Integrated Gas, Upstream, Marketing, Chemicals and Products, Renewables and Energy Solutions, and Corporate. The Integrated Gas segment includes liquefied natural gas (LNG), conversion of natural gas into gas-to-liquids (GTL) fuels and other products. It includes natural gas and liquids exploration and extraction, and the operation of the upstream and midstream infrastructure. The Upstream segment includes exploration and extraction of crude oil, natural gas and natural gas liquids. It also markets and transports oil and gas and operates the infrastructure necessary to deliver them to the market. The Marketing segment comprises the Mobility, Lubricants, and Sectors & Decarbonization businesses. The Chemicals and Products segment includes chemicals manufacturing plants with their own marketing network, and refineries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Chevron and Shell to Sign Agreements in Venezuela
- Agreement Signing: Chevron and Shell are set to sign agreements concerning oil and gas sectors in Venezuela, indicating a strategic collaboration that may enhance their market positions in Latin America.
- Market Potential: Venezuela's abundant oil resources present new investment opportunities for both companies, potentially boosting their competitiveness in the global energy market.
- Policy Environment: With the Venezuelan government opening up to foreign investment, this collaboration could facilitate increased foreign capital inflow, improving local economic conditions and enhancing energy production capabilities.
- Long-term Strategy: This partnership represents not only a short-term business move but also a significant step for both companies in positioning themselves for sustainable development amid the global energy transition.
See More
Shell Plans to Start Natural Gas Production by Mid-2027
- Gas Production Plans: Shell plans to commence natural gas production from the Loran-Manatee offshore field by mid-2027, which spans Venezuela and Trinidad and Tobago, indicating its strategic positioning in the Latin American market.
- Capacity Enhancement: The company has increased the pipeline capacity from the initially planned 700 million cubic feet per day to 1 billion cubic feet per day, which is expected to significantly enhance its market competitiveness in the region.
- Reserve Comparison: The Loran field holds 7.3 trillion cubic feet of gas reserves compared to Manatee's 2.7 trillion cubic feet, and Shell is considering developing both as a unified project to optimize resource allocation.
- Geopolitical Impact: The geopolitical uncertainties stemming from the Middle East conflict have prompted the National Gas Company of Trinidad to advocate for the restart of the first liquefaction train of the Atlantic LNG project, in which Shell and BP each hold 45%, reflecting a responsive strategy to market demands.
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SHELL ANTICIPATES FIRST GAS PRODUCTION FROM LORAN-MANATEE FIELD AT VENEZUELA-TRINIDAD BORDER BY MID-2027, SAYS TRINIDAD NGC CHAIRMAN
Shell's Production Plans: Shell expects to begin producing its first gas from the Loran-Manatee field located at the Venezuela-Trinidad and Tobago border by mid-2027.
Trinidad and Tobago's Involvement: The chairman of Trinidad and Tobago's National Gas Company (NGC) has confirmed this timeline for gas production.
See More
SHELL MANUFACTURING CENTER IN CORUNNA ANNOUNCES MAINTENANCE WORK SET TO LAST AROUND 6 WEEKS
- Maintenance Activities: Shell Manufacturing Center in Corunna is undergoing maintenance activities.
- Duration: These maintenance activities are expected to last for approximately six weeks.
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Oil Prices Surge, Oil Giants Face Challenges
- Surge in Oil Prices: Brent crude oil skyrocketed by 94% in Q1, marking the largest quarterly gain since 1990, positioning oil companies for substantial profits, although not all firms fully benefited from this surge.
- Production Disruptions: Operations at ExxonMobil and Shell faced interruptions due to the Middle East conflict, with Exxon expected to see a 6% decline in global oil and gas production and Shell a 7% drop, directly impacting their financial performance.
- Long-term Loss Projections: ExxonMobil anticipates a $4.9 billion loss due to derivative accounting rules, while Shell expects a $15 billion hit to working capital, indicating significant financial pressure on both companies moving forward.
- Offsetting Effects of High Prices: Despite production declines and losses, ExxonMobil forecasts a $2.3 billion boost in Q1 earnings from rising oil prices, with Shell's earnings now expected to exceed initial forecasts by 10%, suggesting that elevated oil prices will help mitigate some negative impacts.
See More
Oil Prices Surge Due to War with Iran
- Oil Price Surge: Brent crude skyrocketed 94% in Q1, marking the largest quarterly gain since 1990, positioning oil companies for substantial profits in the first quarter, although not all firms fully benefited from the price increase.
- Production Disruptions: Due to the war in the Middle East, both ExxonMobil and Shell faced operational disruptions, with global oil and gas production expected to decline by 6% and 7% respectively in Q1, negatively impacting their financial performance.
- Facility Damage: Iranian attacks damaged two liquefied natural gas (LNG) trains in Qatar, representing 17% of its production capacity, with repairs expected to take three to five years, exacerbating production challenges for ExxonMobil and Shell.
- Financial Impact: Despite production declines and losses, ExxonMobil anticipates a $2.3 billion boost in Q1 earnings from rising oil prices, while Shell's earnings are now expected to be 10% higher than initial forecasts, indicating that elevated oil prices are supporting profitability.
See More
Chevron and Shell to Sign Agreements in Venezuela
- Agreement Signing: Chevron and Shell are set to sign agreements concerning oil and gas sectors in Venezuela, indicating a strategic collaboration that may enhance their market positions in Latin America.
- Market Potential: Venezuela's abundant oil resources present new investment opportunities for both companies, potentially boosting their competitiveness in the global energy market.
- Policy Environment: With the Venezuelan government opening up to foreign investment, this collaboration could facilitate increased foreign capital inflow, improving local economic conditions and enhancing energy production capabilities.
- Long-term Strategy: This partnership represents not only a short-term business move but also a significant step for both companies in positioning themselves for sustainable development amid the global energy transition.
See More
Shell Plans to Start Natural Gas Production by Mid-2027
- Gas Production Plans: Shell plans to commence natural gas production from the Loran-Manatee offshore field by mid-2027, which spans Venezuela and Trinidad and Tobago, indicating its strategic positioning in the Latin American market.
- Capacity Enhancement: The company has increased the pipeline capacity from the initially planned 700 million cubic feet per day to 1 billion cubic feet per day, which is expected to significantly enhance its market competitiveness in the region.
- Reserve Comparison: The Loran field holds 7.3 trillion cubic feet of gas reserves compared to Manatee's 2.7 trillion cubic feet, and Shell is considering developing both as a unified project to optimize resource allocation.
- Geopolitical Impact: The geopolitical uncertainties stemming from the Middle East conflict have prompted the National Gas Company of Trinidad to advocate for the restart of the first liquefaction train of the Atlantic LNG project, in which Shell and BP each hold 45%, reflecting a responsive strategy to market demands.
See More
SHELL ANTICIPATES FIRST GAS PRODUCTION FROM LORAN-MANATEE FIELD AT VENEZUELA-TRINIDAD BORDER BY MID-2027, SAYS TRINIDAD NGC CHAIRMAN
Shell's Production Plans: Shell expects to begin producing its first gas from the Loran-Manatee field located at the Venezuela-Trinidad and Tobago border by mid-2027.
Trinidad and Tobago's Involvement: The chairman of Trinidad and Tobago's National Gas Company (NGC) has confirmed this timeline for gas production.
See More
SHELL MANUFACTURING CENTER IN CORUNNA ANNOUNCES MAINTENANCE WORK SET TO LAST AROUND 6 WEEKS
- Maintenance Activities: Shell Manufacturing Center in Corunna is undergoing maintenance activities.
- Duration: These maintenance activities are expected to last for approximately six weeks.
See More
Oil Prices Surge, Oil Giants Face Challenges
- Surge in Oil Prices: Brent crude oil skyrocketed by 94% in Q1, marking the largest quarterly gain since 1990, positioning oil companies for substantial profits, although not all firms fully benefited from this surge.
- Production Disruptions: Operations at ExxonMobil and Shell faced interruptions due to the Middle East conflict, with Exxon expected to see a 6% decline in global oil and gas production and Shell a 7% drop, directly impacting their financial performance.
- Long-term Loss Projections: ExxonMobil anticipates a $4.9 billion loss due to derivative accounting rules, while Shell expects a $15 billion hit to working capital, indicating significant financial pressure on both companies moving forward.
- Offsetting Effects of High Prices: Despite production declines and losses, ExxonMobil forecasts a $2.3 billion boost in Q1 earnings from rising oil prices, with Shell's earnings now expected to exceed initial forecasts by 10%, suggesting that elevated oil prices will help mitigate some negative impacts.
See More
Oil Prices Surge Due to War with Iran
- Oil Price Surge: Brent crude skyrocketed 94% in Q1, marking the largest quarterly gain since 1990, positioning oil companies for substantial profits in the first quarter, although not all firms fully benefited from the price increase.
- Production Disruptions: Due to the war in the Middle East, both ExxonMobil and Shell faced operational disruptions, with global oil and gas production expected to decline by 6% and 7% respectively in Q1, negatively impacting their financial performance.
- Facility Damage: Iranian attacks damaged two liquefied natural gas (LNG) trains in Qatar, representing 17% of its production capacity, with repairs expected to take three to five years, exacerbating production challenges for ExxonMobil and Shell.
- Financial Impact: Despite production declines and losses, ExxonMobil anticipates a $2.3 billion boost in Q1 earnings from rising oil prices, while Shell's earnings are now expected to be 10% higher than initial forecasts, indicating that elevated oil prices are supporting profitability.
See More
