3 Stocks at the Forefront of Energy Transition Race: ENB, SHEL, E
Economies worldwide 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, it will not completely wipe out oil and natural gas demand. Demand for fossil fuels will also grow, but at a slower pace.
Thus, there are abundant opportunities for energy companies with a footprint in oil and gas resources or in the transportation of commodities and the renewable energy sector. In this backdrop, three such companies that are well poised to gain are Enbridge Inc. ENB, Shell plc SHEL and Eni SpA E.
While providing energy to millions of people, Enbridge is adapting extremely well to the energy transition. From its diverse business, ENB expects to achieve net zero emissions by 2050.
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 leading the energy transition as well. 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.
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This article originally published on Zacks Investment Research (zacks.com).