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4 Major Stocks Leading the Transition in Energy Environment
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The global energy market is rapidly shifting toward a low-carbon future. The pressure on the existing oil and gas businesses to take a greener approach is remarkably higher than ever before. The COVID-19 pandemic further widened the window for environmentalist groups to push for a world with minimum hydrocarbons. Investment firms with Environmental, Social, and Corporate Governance focus are battling with the existing energy structure to reduce emissions and increase the usage of renewables. Notably, the crude price crash of last year has made oil producers cautious and the philosophy of ramping up production at all costs turned turtle.
Several companies are readily diversifying businesses to incorporate more and more renewables in their operations. Norwegian energy major Equinor ASA’s (EQNR - Free Report) key strategy is to capitalize on the renewable energy space. As such, it is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to ramp up its production capacity from renewables to 4-6 GW by 2026. Moreover, by 2035, the company plans to further boost the capacity of renewable projects to 12-16 GW.
BP p.l.c. (BP - Free Report) and Royal Dutch Shell plc are two European energy giants that utilized last year’s crude price crash to reduce dividends and reassess future plans. BP intends to boost low-carbon spending to $5 billion per annum by 2030. Within this time period, it plans to reduce emissions from operations by 30-35%. It also intends to enhance renewable power generation capacity to 50 gigawatts and reduce the weightage of hydrocarbons from the portfolio by 40% from 2019 levels.
Shell had goals to reduce emissions by 20% by 2030, 45% by 2035 and reach net-zero carbon emissions by 2050. It also intends to decrease oil output up to 2% per annum and increase natural gas production. Markedly, in a landmark ruling, a Dutch court ordered the company to speed up the process and reach 45% carbon emission reduction by 2030. The verdict can trigger many more such cases. Shell is expected to fight the order. Notably, it was the first oil company to link executive pay with carbon emissions. Shell has been on renewable acquisition spree of late, having collaborated with IONITY, New Motion, First Utility and Silicon Ranch, as it attempts to diversify its portfolio beyond oil and gas.
French energy giant TOTAL SE plans to get rid of routine flaring from oil production by 2030. It also intends to triple the "electrons" business size, while reducing the portion of oil from the production mix. The Zacks Rank #2 (Buy) company’s gross power generation capacity will likely reach 35 gigawatts by 2025. Of the total electricity sales in 2040, 15-20% is expected to come from renewable resources. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The degree of actively participating in emission reduction and renewable investments from major oil companies in the United States is arguably lower than their European counterparts. However, things are changing fast. Shareholders with greater environment focus recently won two seats in Exxon Mobil Corporation’s (XOM - Free Report) board. Investment firm Engine No. 1 played a crucial role in nominating the potential candidates and urged voters to vote for greener solutions for the company’s business. Analysts are viewing this incident as a major milestone. Similarly, investors in Chevron Corporation (CVX - Free Report) supported a move to incorporate emissions from burning fuels sold by the company, which are part of the integrated firm’s value chain, in its emission reduction targets.
In conclusion, at the current pace, the drive toward a sustainable and greener future with lower emission levels seems attainable within time. Commendable green investment decisions from companies like Equinor, BP, Shell and TOTAL are expected to influence peers around the world to follow the Paris Agreement. However, questions regarding the process of acquiring the required capital for low-carbon and green projects remain, as most of them are expected to be funded by oil activities. Pushing for a sustainable future with lower hydrocarbon activities on the back of oil and gas activities itself seems pointless to many environmental groups.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
Image: Bigstock
4 Major Stocks Leading the Transition in Energy Environment
The global energy market is rapidly shifting toward a low-carbon future. The pressure on the existing oil and gas businesses to take a greener approach is remarkably higher than ever before. The COVID-19 pandemic further widened the window for environmentalist groups to push for a world with minimum hydrocarbons. Investment firms with Environmental, Social, and Corporate Governance focus are battling with the existing energy structure to reduce emissions and increase the usage of renewables. Notably, the crude price crash of last year has made oil producers cautious and the philosophy of ramping up production at all costs turned turtle.
Several companies are readily diversifying businesses to incorporate more and more renewables in their operations. Norwegian energy major Equinor ASA’s (EQNR - Free Report) key strategy is to capitalize on the renewable energy space. As such, it is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to ramp up its production capacity from renewables to 4-6 GW by 2026. Moreover, by 2035, the company plans to further boost the capacity of renewable projects to 12-16 GW.
BP p.l.c. (BP - Free Report) and Royal Dutch Shell plc are two European energy giants that utilized last year’s crude price crash to reduce dividends and reassess future plans. BP intends to boost low-carbon spending to $5 billion per annum by 2030. Within this time period, it plans to reduce emissions from operations by 30-35%. It also intends to enhance renewable power generation capacity to 50 gigawatts and reduce the weightage of hydrocarbons from the portfolio by 40% from 2019 levels.
Shell had goals to reduce emissions by 20% by 2030, 45% by 2035 and reach net-zero carbon emissions by 2050. It also intends to decrease oil output up to 2% per annum and increase natural gas production. Markedly, in a landmark ruling, a Dutch court ordered the company to speed up the process and reach 45% carbon emission reduction by 2030. The verdict can trigger many more such cases. Shell is expected to fight the order. Notably, it was the first oil company to link executive pay with carbon emissions. Shell has been on renewable acquisition spree of late, having collaborated with IONITY, New Motion, First Utility and Silicon Ranch, as it attempts to diversify its portfolio beyond oil and gas.
French energy giant TOTAL SE plans to get rid of routine flaring from oil production by 2030. It also intends to triple the "electrons" business size, while reducing the portion of oil from the production mix. The Zacks Rank #2 (Buy) company’s gross power generation capacity will likely reach 35 gigawatts by 2025. Of the total electricity sales in 2040, 15-20% is expected to come from renewable resources. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The degree of actively participating in emission reduction and renewable investments from major oil companies in the United States is arguably lower than their European counterparts. However, things are changing fast. Shareholders with greater environment focus recently won two seats in Exxon Mobil Corporation’s (XOM - Free Report) board. Investment firm Engine No. 1 played a crucial role in nominating the potential candidates and urged voters to vote for greener solutions for the company’s business. Analysts are viewing this incident as a major milestone. Similarly, investors in Chevron Corporation (CVX - Free Report) supported a move to incorporate emissions from burning fuels sold by the company, which are part of the integrated firm’s value chain, in its emission reduction targets.
In conclusion, at the current pace, the drive toward a sustainable and greener future with lower emission levels seems attainable within time. Commendable green investment decisions from companies like Equinor, BP, Shell and TOTAL are expected to influence peers around the world to follow the Paris Agreement. However, questions regarding the process of acquiring the required capital for low-carbon and green projects remain, as most of them are expected to be funded by oil activities. Pushing for a sustainable future with lower hydrocarbon activities on the back of oil and gas activities itself seems pointless to many environmental groups.
Time to Invest in Legal Marijuana
If you’re looking for big gains, there couldn’t be a better time to get in on a young industry primed to skyrocket from $17.7 billion back in 2019 to an expected $73.6 billion by 2027.
After a clean sweep of 6 election referendums in 5 states, pot is now legal in 36 states plus D.C. Federal legalization is expected soon and that could be a still greater bonanza for investors. Even before the latest wave of legalization, Zacks Investment Research has recommended pot stocks that have shot up as high as +285.9%
You’re invited to check out Zacks’ Marijuana Moneymakers: An Investor’s Guide. It features a timely Watch List of pot stocks and ETFs with exceptional growth potential.
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