London, April 3, 2026, 12:06 BST
Shell is among oil majors studying a 51% stake in the Shenandoah offshore field in the U.S. Gulf, sources familiar with the process said, as conflict-driven supply fears push buyers toward North American barrels. BP and TotalEnergies are also in the early mix, while Shell declined to comment.
The timing matters. Brent settled at $109.03 a barrel and U.S. crude at $111.54 on Thursday after Trump vowed more attacks on Iran, and immediate U.S. crude for next-month delivery traded at a record premium to later barrels — a sign traders are paying up for near-term supply. Shell’s financial calendar shows a first-quarter update due on April 8, with full Q1 results scheduled for May 7.
That improves the backdrop for the sector. LSEG data showed European energy companies are expected to post 24.9% first-quarter earnings growth, far ahead of the broader market, while U.S. refined product exports jumped to a record 3.11 million barrels per day in March as Europe, Asia and Africa sought replacement supply. Kpler analyst Matt Smith said the tight market was “pulling barrels out of the U.S. Gulf Coast export hub.” Reuters
Beacon Offshore Energy and HEQ Deepwater started the sale process in recent days, offering potential buyers the 51% holding they control in Shenandoah, while Navitas Petroleum owns the rest and initial bids are expected in the coming weeks, the sources said. Beacon said the field began producing in July 2025 and that its first four development wells reached the 100,000-barrels-per-day target within 75 days.
Shenandoah is a technically hard offshore project. The reservoirs sit about 30,000 feet down under pressure of roughly 20,000 pounds per square inch, and Beacon said the floating production system off Louisiana has nameplate capacity of 120,000 barrels a day. That helps explain why barrels from a basin far from the war zone look more attractive.
Shell has already pointed to the U.S. Gulf as one of the regions helping it cover a 2030 production gap. In February, the company said investments in the U.S. Gulf, Brazil, Nigeria, Angola, South Africa and Namibia, along with field improvements, had largely covered a nearer-term shortfall.
That does not remove the longer-term pressure. Wood Mackenzie data showed Shell’s reserve life had slipped below eight years, versus more than 12 years at Exxon and TotalEnergies, and RBC analyst Biraj Borkhataria said, “Absent M&A in the near term, we expect these concerns over [production] longevity to linger.” Wael Sawan said in February the company did not have to buy additional assets anytime soon to meet its 2030 targets. Reuters
There are risks. Not every interested party may bid, and the final price will depend on how much of Shenandoah is sold and where oil settles. Again Capital’s John Kilduff said the market’s risk premium would “immediately go down” if Hormuz reopened within a couple of weeks, while J.P. Morgan said oil could climb above $150 only if disruptions last into mid-May. Reuters
Still, the auction shows how quickly the map has shifted for the big European majors. North American supply is fetching a premium, BP and TotalEnergies are circling the same asset, and Shell heads into next week’s update with investors watching whether it turns selective interest into a larger U.S. Gulf bet.
