Why Oil Drillers Are Investing Big in South America
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jul 07 2025
0mins
Source: WSJ
Oil Production Growth: Brazil, Guyana, and Argentina are expected to contribute over 80% of the increase in global oil production outside OPEC in the next five years.
Offsetting Conflicts: This growth is significant as it compensates for production declines in regions where major oil producers are facing conflicts.
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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: 82.700
Low
41.75
Averages
74.27
High
91.00
Current: 82.700
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 Signs Exploration Agreement with Kazakhstan's Ministry of Energy
- Exploration Agreement: Shell has signed an agreement with Kazakhstan's Ministry of Energy to conduct geological exploration at the Zhanaturmys site in the Aktobe region, which is expected to enhance the country's future oil and gas supply outlook and aid in evaluating its long-term hydrocarbon potential.
- Investment Commitment: The company will invest no less than 100 million tenge in the project to support regional socio-economic development, with the scale and technical complexity of the initiative set to extend until 2032, demonstrating Shell's strategic expansion and commitment to local communities.
- LNG Partnership: Shell has entered into a significant agreement with Metlen to supply and trade approximately 0.5 to 1.0 bcm of liquefied natural gas annually from 2027 to 2031, further solidifying its position in the LNG market and supporting its strategic goals in the energy sector.
- Stock Performance Analysis: Over the past year, Shell's stock has increased by 25.11%, currently trading above key moving averages, indicating strong investor confidence and a sustained upward trend, with technical indicators like RSI and MACD supporting this positive outlook.
See More
Shell Signs Geological Exploration Contract in Kazakhstan
- Contract Signing: Shell (SHEL) has signed a geological exploration contract for the Zhanaturmys field in the Aktobe region of Kazakhstan, effective until 2032, indicating Shell's long-term commitment to the country despite the lack of disclosed investment amounts.
- Exploration Details: The contract encompasses seismic surveys, data collection, and technical assessments, all of which must comply with regulatory requirements and obtain necessary approvals, ensuring the project's compliance and effectiveness.
- Long-term Cooperation: Shell's Kazakhstan Country Chair Suzanne Coogan stated that this contract further confirms Shell's long-term cooperative relationship with Kazakhstan, even as the company faces ongoing international arbitration disputes with the country.
- Arbitration Impact: In January, Shell and its partners lost an international arbitration case regarding the Karachaganak field, potentially liable for up to $4 billion in compensation to the government, which could impact the company's financial health and future investment decisions.
See More
Shell and Cosan Fail to Agree on Capital Raising Plan
- Capital Raising Talks Fail: Shell and Cosan have failed to reach an agreement on a capital raising plan, highlighting strategic differences that may impact future collaboration opportunities.
- Uncertain Cooperation Outlook: The breakdown of negotiations could hinder progress on joint projects, particularly in the areas of energy transition and renewable energy collaboration potential.
- Negative Market Reaction: Investors reacted negatively to the news of the failed talks, which may put pressure on the stock prices of both Shell and Cosan in the short term, affecting market confidence.
- Need for Strategic Reevaluation: Both companies must reassess their capital needs and collaboration models to maintain competitiveness and achieve sustainable growth in the evolving market landscape.
See More
Shell and Cosan Fail to Reach Financing Agreement, Raízen Faces Debt Crisis
- Failed Financing Agreement: Shell (SHEL) and Cosan (CSAN) could not agree on a financing plan for Raízen, leaving the joint venture in a precarious debt crisis, highlighting the significant divergence in their capital injection strategies.
- Shell's Investment Commitment: Shell has committed to investing 3.5 billion reais (approximately $666 million) in Raízen and expects another shareholder to match this amount, yet Cosan's inability to match this financial scale complicates the situation further.
- Increased Debt Pressure: Creditors are pressuring Shell and Cosan to inject up to 12 billion reais, arguing that both companies have sufficient cash flow to support Raízen's recovery, reflecting market concerns about their financial health.
- Shell's Future Plans: Shell is expected to present its own plan to banks, which, if successful, would make it the majority owner of Raízen and require it to absorb Raízen's debt into its balance sheet, significantly impacting its financial position.
See More
Energy Stocks Decline as NYSE Energy Sector Index Falls 1.5%
- Market Weakness: Late Tuesday afternoon, energy stocks broadly declined, with the NYSE Energy Sector Index falling 1.5%, indicating investor concerns over energy demand prospects that could lead to decreased market confidence.
- Investor Sentiment Dips: The weak performance of energy stocks, driven by expectations of slowing global economic growth, may affect the financing capabilities and future investment plans of related companies, negatively impacting the overall industry development.
- Increased Sector Volatility: The decline in the energy sector could prompt investors to shift their focus to other related industries, especially amid heightened economic uncertainty, potentially leading to capital flows into more stable investment areas.
- Long-term Impact to Watch: While energy stocks are underperforming in the short term, the market's focus on future energy transitions and renewable energy investments may present new growth opportunities for the sector in the medium to long term.
See More
Energy Stocks Decline on Tuesday Afternoon
- Energy Sector Weakness: On Tuesday afternoon, the NYSE Energy Sector Index declined, indicating a weakening confidence in energy stocks, likely influenced by concerns over global economic slowdown and lackluster demand.
- Investor Sentiment Dips: The reduced interest in energy stocks led to a broad decline in related stock prices, reflecting market worries about future energy demand, which could impact earnings expectations for companies in the sector.
- Industry Impact Analysis: The drop in energy stocks may negatively affect overall market sentiment, particularly amid increasing economic uncertainty, prompting investors to consider more stable investment options.
- Uncertain Future Outlook: As global economic conditions evolve, challenges facing the energy sector may intensify, necessitating investors to closely monitor market developments to adjust their investment strategies accordingly.
See More
Shell Signs Exploration Agreement with Kazakhstan's Ministry of Energy
- Exploration Agreement: Shell has signed an agreement with Kazakhstan's Ministry of Energy to conduct geological exploration at the Zhanaturmys site in the Aktobe region, which is expected to enhance the country's future oil and gas supply outlook and aid in evaluating its long-term hydrocarbon potential.
- Investment Commitment: The company will invest no less than 100 million tenge in the project to support regional socio-economic development, with the scale and technical complexity of the initiative set to extend until 2032, demonstrating Shell's strategic expansion and commitment to local communities.
- LNG Partnership: Shell has entered into a significant agreement with Metlen to supply and trade approximately 0.5 to 1.0 bcm of liquefied natural gas annually from 2027 to 2031, further solidifying its position in the LNG market and supporting its strategic goals in the energy sector.
- Stock Performance Analysis: Over the past year, Shell's stock has increased by 25.11%, currently trading above key moving averages, indicating strong investor confidence and a sustained upward trend, with technical indicators like RSI and MACD supporting this positive outlook.
See More
Shell Signs Geological Exploration Contract in Kazakhstan
- Contract Signing: Shell (SHEL) has signed a geological exploration contract for the Zhanaturmys field in the Aktobe region of Kazakhstan, effective until 2032, indicating Shell's long-term commitment to the country despite the lack of disclosed investment amounts.
- Exploration Details: The contract encompasses seismic surveys, data collection, and technical assessments, all of which must comply with regulatory requirements and obtain necessary approvals, ensuring the project's compliance and effectiveness.
- Long-term Cooperation: Shell's Kazakhstan Country Chair Suzanne Coogan stated that this contract further confirms Shell's long-term cooperative relationship with Kazakhstan, even as the company faces ongoing international arbitration disputes with the country.
- Arbitration Impact: In January, Shell and its partners lost an international arbitration case regarding the Karachaganak field, potentially liable for up to $4 billion in compensation to the government, which could impact the company's financial health and future investment decisions.
See More
Shell and Cosan Fail to Agree on Capital Raising Plan
- Capital Raising Talks Fail: Shell and Cosan have failed to reach an agreement on a capital raising plan, highlighting strategic differences that may impact future collaboration opportunities.
- Uncertain Cooperation Outlook: The breakdown of negotiations could hinder progress on joint projects, particularly in the areas of energy transition and renewable energy collaboration potential.
- Negative Market Reaction: Investors reacted negatively to the news of the failed talks, which may put pressure on the stock prices of both Shell and Cosan in the short term, affecting market confidence.
- Need for Strategic Reevaluation: Both companies must reassess their capital needs and collaboration models to maintain competitiveness and achieve sustainable growth in the evolving market landscape.
See More
Shell and Cosan Fail to Reach Financing Agreement, Raízen Faces Debt Crisis
- Failed Financing Agreement: Shell (SHEL) and Cosan (CSAN) could not agree on a financing plan for Raízen, leaving the joint venture in a precarious debt crisis, highlighting the significant divergence in their capital injection strategies.
- Shell's Investment Commitment: Shell has committed to investing 3.5 billion reais (approximately $666 million) in Raízen and expects another shareholder to match this amount, yet Cosan's inability to match this financial scale complicates the situation further.
- Increased Debt Pressure: Creditors are pressuring Shell and Cosan to inject up to 12 billion reais, arguing that both companies have sufficient cash flow to support Raízen's recovery, reflecting market concerns about their financial health.
- Shell's Future Plans: Shell is expected to present its own plan to banks, which, if successful, would make it the majority owner of Raízen and require it to absorb Raízen's debt into its balance sheet, significantly impacting its financial position.
See More
Energy Stocks Decline as NYSE Energy Sector Index Falls 1.5%
- Market Weakness: Late Tuesday afternoon, energy stocks broadly declined, with the NYSE Energy Sector Index falling 1.5%, indicating investor concerns over energy demand prospects that could lead to decreased market confidence.
- Investor Sentiment Dips: The weak performance of energy stocks, driven by expectations of slowing global economic growth, may affect the financing capabilities and future investment plans of related companies, negatively impacting the overall industry development.
- Increased Sector Volatility: The decline in the energy sector could prompt investors to shift their focus to other related industries, especially amid heightened economic uncertainty, potentially leading to capital flows into more stable investment areas.
- Long-term Impact to Watch: While energy stocks are underperforming in the short term, the market's focus on future energy transitions and renewable energy investments may present new growth opportunities for the sector in the medium to long term.
See More
Energy Stocks Decline on Tuesday Afternoon
- Energy Sector Weakness: On Tuesday afternoon, the NYSE Energy Sector Index declined, indicating a weakening confidence in energy stocks, likely influenced by concerns over global economic slowdown and lackluster demand.
- Investor Sentiment Dips: The reduced interest in energy stocks led to a broad decline in related stock prices, reflecting market worries about future energy demand, which could impact earnings expectations for companies in the sector.
- Industry Impact Analysis: The drop in energy stocks may negatively affect overall market sentiment, particularly amid increasing economic uncertainty, prompting investors to consider more stable investment options.
- Uncertain Future Outlook: As global economic conditions evolve, challenges facing the energy sector may intensify, necessitating investors to closely monitor market developments to adjust their investment strategies accordingly.
See More
