3 Oil Companies to Gain From Renewable Energy Investment

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, oil and natural gas demand will not be completely wiped out.

The U.S. Energy Information Administration, in its Annual Energy Outlook 2023, revealed that through 2050, renewables will increasingly match power demand. Thus, there are abundant opportunities for energy companies with a footprint in oil and gas resources or transporting commodities and the renewable energy space. Three such companies are Shell plc SHELEni SpA E and Enbridge Inc ENB, 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.

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Growing renewable business at a rapid pace is among the core strategies of Shell. In the renewable energy front, Shell has roughly 50 gigawatts (GW) of renewable generation capacity, considering projects that are either in operation, under construction or in the pipeline. Thus, for renewables and energy solutions, SHEL is investing actively in solar energy, wind energy, electric vehicle charging and others.

To implement the production of renewable energy, Plenitude, a benefit company, was established and is being controlled by Eni. To counter the decarbonization challenge, renewable energy generation is among the key strategies of Eni. This is reflected in its ambitious goal for more than 15 GW of installed renewable energy generating capacity by 2030.

Enbridge has been investing in wind farms, solar energy, geothermal projects and power transmission developments, reflecting the company’s strong focus on renewables. Considering all the renewable energy projects that are either operational or under construction, Enbridge boasts a net of 2,173 megawatts of zero-emission energy generating capacity.
Eni SpA (E): Free Stock Analysis Report

Enbridge Inc (ENB): Free Stock Analysis Report

Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis Report

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