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.

Chevron Shifts Focus After Venezuela Exit

Chevron, which had the most extensive legacy exposure to Venezuela among U.S. oil majors, has already begun adjusting its strategy under renewed U.S. sanctions. Its exit from Venezuela is now effectively cemented. However, this is unlikely to derail its investment case.

CVX’s Permian Basin dominance, efficient Gulf of Mexico operations, and fast-growing LNG positions in Africa and the United States keep it firmly positioned for medium-to-long-term strength. Additionally, Chevron's strong balance sheet, dividend track record and disciplined capital spending remain compelling for income-focused investors. CVX currently carries a Zacks Rank #3.

Final Thoughts on Resilience Amid Global Uncertainty

The license revocations add to geopolitical noise but do not undermine the strong fundamentals of these supermajors. Trinidad’s government plans to engage with U.S. officials to emphasize the strategic importance of the affected gas projects. SHEL, BP and CVX have diversified portfolios that spread political and operational risks across multiple geographies.

In the broader picture, these companies are weathering temporary geopolitical shocks while executing disciplined capital strategies and expanding investments in low-carbon energy. Their growing investment in energy transition technologies positions them well for future shifts in demand and regulation.

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This article originally published on Zacks Investment Research (zacks.com).

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