The oil company has been the title sponsor of the Houston golf tournament since 1992.
Shell Oil President Marvin Odum said he was "pleased and proud" the relationship was being extended.
"To me, this is much more than just a golf tournament. It is an opportunity for us to give back to the city and citizens of Houston through charitable contributions," Odum said.
The Houston Open is the 10th-oldest tournament on the PGA Tour, dating to 1946, and Shell's support ranks as the third-longest running sponsorship.
PGA Tour Commissioner Tim Finchem said he was "thrilled" by the deal.
"Shell has been a terrific partner of the PGA Tour and Houston Golf Association and has contributed significantly to the tournament's growth and charitable and economic impact in the Houston area," Finchem said.
Anthony Kim defends his title this weekend at Redstone Golf Club, where the tournament has been held since 2003.