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Here are 3 Key Stocks Leading the Energy Transition Race

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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, it 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, 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 BP plc (BP - Free Report) , Shell plc (SHEL - Free Report) and Enbridge Inc. (ENB - Free Report) , which are well poised to gain in the long run.

3 Stocks

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%.

While providing energy to millions of people, Enbridge is also adapting extremely well to the energy transition. From its diverse business, the company is expecting to achieve net zero emissions by 2050.

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