Reviewed by Gotrade Internal Analyst
Jakarta, Gotrade News - The political shake-up in Venezuela is cracking the door wide open for global energy giants to reclaim billion-dollar gas projects. Shell plc is now setting its sights on developing the massive Dragon gas field, a project that’s been stuck in limbo for years due to US sanctions.
Key Takeaways
- The Dragon gas project could rake in up to $500 million annually for three decades.
- US heavyweights like Chevron are expected to get "dibs" or priority access before European players.
- A surge in Venezuelan production could flood the market, putting serious pressure on global oil prices.
Read also: Pepsi & Coca-Cola's 'Reset' Signal in Venezuela
The Dragon field holds an estimated 120 billion cubic meters of gas—a seriously juicy asset for investors. According to The Telegraph, Donald Trump’s intervention could hit the fast-forward button on this massive moneymaker.
Shell is expected to double down on its focus here after Trump called for more investment to boost Venezuela's energy output. However, with Trump’s strong preference for US businesses, Shell might need to hook up with a local or American partner to stay in the game.
US Players Taking the Lead
Analysts are betting on American companies being the big winners in this first wave. Chevron Corporation has a clear competitive edge since they’ve already been operating on the ground under government supervision.
Ashley Kelty from investment bank Panmure Liberum mentioned that European majors might initially get locked out of the prime assets. But they won't be out for long—they’ll likely be invited back in later through joint ventures to help spread the operational risk.
Besides Shell, BP also has interests in the region that could be brought back to life. The British firm is currently lobbying to reinstate its exploration licenses for the Manakin-Cocuina field which were revoked last year.
A Headache for OPEC
Turning Venezuela’s oil taps back on is a major threat to OPEC’s grip on prices. Increased production from the Latin American nation could flood a market that’s already trending down.
Read also: US Sets Terms for Oil Giants in Venezuela: Invest First, Get Paid Later
Greg Newman from Onyx Capital warned that this extra supply could trigger a surplus of one to two million barrels a day. This scenario would make things even tougher for OPEC, which just witnessed oil prices drop by 18 percent throughout 2025.
Reference:
- The Telegraph, Shell eyes return to Venezuela to claim gas billions. Accessed on January 5, 2026
- Featured Image: Shutterstock
Disclaimer
Gotrade is the trading name of Gotrade Securities Inc., registered with and supervised by the Labuan Financial Services Authority (LFSA). This content is for educational purposes only and does not constitute financial advice. Always do your own research (DYOR) before investing.
