Shell targets Venezuela as energy alternative amid global energy tensions

Shell CEO Wael Sawan warned that Europe could face energy shortages starting next month, amid tensions stemming from the Middle East conflict and its effects on global supply. Sawan pointed out that ensuring energy supply is key to national security, and warned that the war has affected energy infrastructure and reduced resource flow through strategic routes such as the Strait of Hormuz, through which a significant portion of the world's oil and gas passes. As explained to Reuters, the crisis has already impacted jet fuel supply and could extend to diesel and gasoline in the coming weeks, as demand increases in the Northern Hemisphere with the arrival of the summer season. The conflict, now in its several weeks, has begun to shift its effects from Asia to other regions, including Europe, where alerts have also been issued about possible limitations in energy supply by the end of April or May if the situation persists. In parallel, the executive indicated that Shell is evaluating development opportunities in Venezuela, especially in the natural gas sector, as well as possible oil projects. The company expects to advance one or two projects in the country before the end of the year, depending on fiscal and legal conditions. Sawan highlighted that the company seeks to add value to Venezuela's energy development, with a special interest in gas that can be marketed through liquefied natural gas (LNG). He also recalled that Shell has been working on the Dragon offshore gas project in Venezuela, which has not fully advanced in recent years due to sanctions, but which it now seeks to boost for processing in Trinidad and Tobago. In this context, the executive also noted that the company has held preliminary agreements with the Venezuelan government for the development of oil and gas projects, in a scenario where other international companies are also evaluating their return to the country.