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The Trump Administration has escalated its crackdown on Venezuela’s oil and gas industry, revoking key licenses for international energy majors, including Shell plc SHEL, BP plc BP and Chevron Corporation CVX. These licenses had previously allowed operations in offshore Venezuelan gas fields and the export of resources to neighboring Trinidad and Tobago.
The move affects two major gas projects — Shell’s involvement in the Dragon gas field and BP’s role in the Cocuina-Manakin project. Both projects were considered critical for boosting energy security in the Caribbean region and maintaining stable natural gas supplies for Trinidad and Tobago.
This comes shortly after the administration revoked Chevron’s license to operate in Venezuela and halted license provisions for other European players in February this year as part of a broader policy tightening on the Maduro-led regime.
Shell’s Broader LNG Portfolio Cushions the Effect
While the revocation curtails Shell’s immediate plans in Venezuela, the impact on its global portfolio is limited. Shell’s strength in LNG markets, particularly in Qatar, Australia, and the United States, continues to generate resilient cash flows. Its Dragon project, expected to begin exports to Trinidad — Latin America’s largest LNG exporter — in 2026, hadnot yet started production. As a result, its removal primarily delays long-term output rather than impairing current revenues.
Moreover, Shell’s commitment to capital discipline, its growing renewable assets and buyback programs support a positive long-term outlook. The company has maintained robust upstream performance despite geopolitical headwinds, making SHEL a stock worth holding through the turbulence. SHEL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BP’s Growth Story Remains on Track Despite Setbacks
BP’s setback in the Cocuina-Manakin offshore project is disappointing for its Caribbean ambitions but manageable within its diversified global energy portfolio. The company’s transition strategy, which includes offshore wind, bioenergy and hydrogen, remains intact and increasingly central to its long-term earnings growth.
Additionally, BP’s North Sea operations, expanding LNG interests and strong refining margins help cushion the blow. Investors should view this Venezuela-related delay as a geopolitical hiccup rather than a fundamental threat to BP’s value proposition. The company currently carries a Zacks Rank #3.