Economies across the world are gradually transitioning to cleaner energy sources. There has been a steady increase in pressure on energy companies to act on climate change on multiple fronts. Most analysts believe that although renewable energy will meet future energy needs, this will not completely wipe out oil and natural gas demand. Demand for fossil fuels will also grow but at a slower pace.
The U.S. Energy Information Administration (“EIA”), in its Annual Energy Outlook 2022, revealed that renewables consumption will grow through 2050 at the fastest pace. EIA projects that over the period in the United States, the energy sources that will be mostly consumed are petroleum and natural gas.
Thus, there are abundant opportunities for energy companies with a footprint in oil and gas resources and the renewable energy space. Three such companies are BP plc ( – Free Report) , Shell plc ( – Free Report) and Eni SpA ( – Free Report) , each of which carries a Zacks Rank #3 (Hold). Thus, investors should keep an eye on these three energy firms as they are well poised to gain in the long run.
BP, a British energy giant, is planning to become a net-zero emissions player by 2050 or earlier. The integrated company intends to invest and create its renewable energy generation capacity of 20 gigawatts by 2025. The company also has strong upstream and downstream activities.
Shell also has the same ambitious target of becoming a net-zero emissions energy player by 2050 or earlier. By 2030, the integrated energy company plans to lower absolute emissions by 50%.
Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.