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 2023, revealed that renewables will be meeting future power demand at a bigger scale. By 2050, the United States will witness majority of its electricity generation from solar and wind, announced EIA and added that through 2050, the nation will remain a net exporter of petroleum products 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 (BP Quick QuoteBP - Free Report) , Shell plc (SHEL Quick QuoteSHEL - Free Report) and Equinor ASA (EQNR Quick QuoteEQNR - Free Report) , each carrying 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.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BP, a British energy giant, plans 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 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%.

Equinor is aiding the United States in accelerating its transition to net zero. EQNR also has an ambitious plan to achieve its net zero company target by 2050.