Shell Advances Natural Gas Project in Venezuela Following License Issuance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SHEL?
Source: seekingalpha
- License Issuance: Shell (SHEL) announced that the general licenses for oil and gas exploration issued by the Trump administration provide an opportunity to advance its Dragon natural gas project, indicating a positive shift in U.S. policy.
- Reserves and Potential: The project, located in Venezuelan waters, has 4.5 trillion cubic feet of gas reserves, and despite several years of interruptions due to policy changes, it is now poised for progress.
- Export Plans: Shell aims to export gas through the Atlantic LNG facility in nearby Trinidad and Tobago, which has a production capacity of 12 million metric tons per year, with Shell holding a 45% stake and BP also owning 45%.
- Market Impact: According to LSEG data, Atlantic LNG exported only 9 million tons in 2025, falling short of its capacity, with 10% of Shell's global LNG production sourced from this facility, highlighting its significance in the global market.
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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: 79.870
Low
41.75
Averages
74.27
High
91.00
Current: 79.870
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.
Shell Advances Natural Gas Project in Venezuela Following License Issuance
- License Issuance: Shell (SHEL) announced that the general licenses for oil and gas exploration issued by the Trump administration provide an opportunity to advance its Dragon natural gas project, indicating a positive shift in U.S. policy.
- Reserves and Potential: The project, located in Venezuelan waters, has 4.5 trillion cubic feet of gas reserves, and despite several years of interruptions due to policy changes, it is now poised for progress.
- Export Plans: Shell aims to export gas through the Atlantic LNG facility in nearby Trinidad and Tobago, which has a production capacity of 12 million metric tons per year, with Shell holding a 45% stake and BP also owning 45%.
- Market Impact: According to LSEG data, Atlantic LNG exported only 9 million tons in 2025, falling short of its capacity, with 10% of Shell's global LNG production sourced from this facility, highlighting its significance in the global market.
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- Significant Market Reaction: The political turmoil has impacted the UK debt market, with the gap between two-year and ten-year gilt yields widening to 86 basis points, the largest since 2018, indicating heightened investor concerns over future borrowing costs that could lead to increased government financing expenses.
- Weak Economic Growth: The Eurozone posted only 1.3% year-on-year growth in Q4, with industrial production falling 1.4% month-on-month, and amid pressures from immigration issues, this could strengthen support for right-leaning parties, further affecting political stability.
- Declining Public Trust: Surveys indicate over 70% of the public disapprove of Prime Minister Keir Starmer, and the ongoing political crisis may lead to a further decline in his approval ratings, with markets pricing a 68% chance of his departure by June.
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- Market Sentiment: There is a prevailing belief in the market that Starmer's departure from leadership is imminent.
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U.S. Treasury Eases Oil and Gas Investment Restrictions in Venezuela
- New License Issued: The U.S. Treasury has issued a general license allowing international oil companies, including Chevron, to negotiate and sign contracts for oil and gas extraction in Venezuela, paving the way for global oil firms to re-enter the country.
- Tax Requirements: Under the new license, participating companies must pay oil and gas royalties or taxes to Venezuela or its state-run energy company, with these funds deposited into a U.S. Treasury account for foreign governments, ensuring transparency in fund allocation.
- Legal Adjustment Context: The license announcement aligns with adjustments made by Venezuela's interim government to its hydrocarbon law aimed at easing state control over the oil industry, although major U.S. firms remain cautious about investing.
- Market Reaction: Following this news, stocks of major oil companies like Chevron, BP, and Shell rose between 0.5% and 1.7%, indicating a positive market response to the new investment opportunities.
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Shell Reviews Strategic Options for Sprng Energy Amid Portfolio Shift
- Strategic Review Initiated: Shell has confirmed it is reviewing strategic options for Sprng Energy, its India-based renewable power unit acquired for $1.55 billion in 2022, although it has not commented on the review's outcome, reflecting a reassessment of its low-carbon portfolio.
- Operational Capacity Overview: Sprng Energy boasts an operational capacity of 2,300 MWp and a contracted total capacity of 5,026 MWp, indicating its potential in the Indian renewable energy market while providing a significant asset base for Shell's long-term strategy.
- CEO's Shift in Perspective: Shell's CEO Wael Sawan stated at the International Energy Week 2026 that the company cannot be divorced from global energy demands, suggesting a possible adjustment to its net-zero emissions target in light of anticipated growth in energy consumption.
- Future Production Goals: Shell aims to increase oil and gas production by at least 1 million barrels of oil equivalent per day by 2030, indicating a continued investment in traditional energy sectors, which may influence its renewable energy strategy.
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Shell Does Not Need Additional Asset Acquisitions to Meet 2030 Targets
- Short-Term Gap Coverage: CEO Wael Sawan stated that Shell has largely covered its anticipated near-term production shortfall through investments in the U.S. Gulf, Brazil, Nigeria, Angola, South Africa, and Namibia, ensuring the company can meet its 2030 targets without additional acquisitions.
- Declining Reserve Life: As of 2025, Shell's reserve life has dropped to less than eight years, down from nine years in 2024, indicating a concerning decline in production from maturing fields, which is significantly lower than the 12-plus years seen at Exxon and TotalEnergies, potentially impacting future output.
- Capital Utilization Strategy: Sawan emphasized that Shell does not need to leverage its own capital for U.S. LNG projects due to the availability of abundant low-cost funding for infrastructure, which helps mitigate financial risks and optimize capital allocation.
- LNG Market Management: As one of the largest offtakers of U.S. LNG, Shell effectively manages price exposure through customer contracts indexed to Henry Hub natural gas prices, allowing the company to capture attractive value in the LNG chain without tying up significant capital.
See More
Shell Advances Natural Gas Project in Venezuela Following License Issuance
- License Issuance: Shell (SHEL) announced that the general licenses for oil and gas exploration issued by the Trump administration provide an opportunity to advance its Dragon natural gas project, indicating a positive shift in U.S. policy.
- Reserves and Potential: The project, located in Venezuelan waters, has 4.5 trillion cubic feet of gas reserves, and despite several years of interruptions due to policy changes, it is now poised for progress.
- Export Plans: Shell aims to export gas through the Atlantic LNG facility in nearby Trinidad and Tobago, which has a production capacity of 12 million metric tons per year, with Shell holding a 45% stake and BP also owning 45%.
- Market Impact: According to LSEG data, Atlantic LNG exported only 9 million tons in 2025, falling short of its capacity, with 10% of Shell's global LNG production sourced from this facility, highlighting its significance in the global market.
See More
Epstein Files Trigger Political Crisis Across Europe
- Political Turmoil Intensifies: The release of the Epstein files has led to career collapses in London, Oslo, and Paris, with UK royal Andrew Mountbatten-Windsor arrested for misconduct, highlighting the close ties between political elites and scandal, which may further erode public trust in government.
- Significant Market Reaction: The political turmoil has impacted the UK debt market, with the gap between two-year and ten-year gilt yields widening to 86 basis points, the largest since 2018, indicating heightened investor concerns over future borrowing costs that could lead to increased government financing expenses.
- Weak Economic Growth: The Eurozone posted only 1.3% year-on-year growth in Q4, with industrial production falling 1.4% month-on-month, and amid pressures from immigration issues, this could strengthen support for right-leaning parties, further affecting political stability.
- Declining Public Trust: Surveys indicate over 70% of the public disapprove of Prime Minister Keir Starmer, and the ongoing political crisis may lead to a further decline in his approval ratings, with markets pricing a 68% chance of his departure by June.
See More
Bond Yields and Stocks Offer a Smart Strategy as U.K. PM Starmer Struggles to Stay Afloat
- Political Struggles: Prime Minister Keir Starmer is currently facing significant challenges regarding his political future.
- Market Sentiment: There is a prevailing belief in the market that Starmer's departure from leadership is imminent.
See More
U.S. Treasury Eases Oil and Gas Investment Restrictions in Venezuela
- New License Issued: The U.S. Treasury has issued a general license allowing international oil companies, including Chevron, to negotiate and sign contracts for oil and gas extraction in Venezuela, paving the way for global oil firms to re-enter the country.
- Tax Requirements: Under the new license, participating companies must pay oil and gas royalties or taxes to Venezuela or its state-run energy company, with these funds deposited into a U.S. Treasury account for foreign governments, ensuring transparency in fund allocation.
- Legal Adjustment Context: The license announcement aligns with adjustments made by Venezuela's interim government to its hydrocarbon law aimed at easing state control over the oil industry, although major U.S. firms remain cautious about investing.
- Market Reaction: Following this news, stocks of major oil companies like Chevron, BP, and Shell rose between 0.5% and 1.7%, indicating a positive market response to the new investment opportunities.
See More
Shell Reviews Strategic Options for Sprng Energy Amid Portfolio Shift
- Strategic Review Initiated: Shell has confirmed it is reviewing strategic options for Sprng Energy, its India-based renewable power unit acquired for $1.55 billion in 2022, although it has not commented on the review's outcome, reflecting a reassessment of its low-carbon portfolio.
- Operational Capacity Overview: Sprng Energy boasts an operational capacity of 2,300 MWp and a contracted total capacity of 5,026 MWp, indicating its potential in the Indian renewable energy market while providing a significant asset base for Shell's long-term strategy.
- CEO's Shift in Perspective: Shell's CEO Wael Sawan stated at the International Energy Week 2026 that the company cannot be divorced from global energy demands, suggesting a possible adjustment to its net-zero emissions target in light of anticipated growth in energy consumption.
- Future Production Goals: Shell aims to increase oil and gas production by at least 1 million barrels of oil equivalent per day by 2030, indicating a continued investment in traditional energy sectors, which may influence its renewable energy strategy.
See More
Shell Does Not Need Additional Asset Acquisitions to Meet 2030 Targets
- Short-Term Gap Coverage: CEO Wael Sawan stated that Shell has largely covered its anticipated near-term production shortfall through investments in the U.S. Gulf, Brazil, Nigeria, Angola, South Africa, and Namibia, ensuring the company can meet its 2030 targets without additional acquisitions.
- Declining Reserve Life: As of 2025, Shell's reserve life has dropped to less than eight years, down from nine years in 2024, indicating a concerning decline in production from maturing fields, which is significantly lower than the 12-plus years seen at Exxon and TotalEnergies, potentially impacting future output.
- Capital Utilization Strategy: Sawan emphasized that Shell does not need to leverage its own capital for U.S. LNG projects due to the availability of abundant low-cost funding for infrastructure, which helps mitigate financial risks and optimize capital allocation.
- LNG Market Management: As one of the largest offtakers of U.S. LNG, Shell effectively manages price exposure through customer contracts indexed to Henry Hub natural gas prices, allowing the company to capture attractive value in the LNG chain without tying up significant capital.
See More
