Global economies are progressively shifting toward cleaner energy sources, and energy companies are facing growing pressure to address climate change from various angles. While most analysts agree that renewable energy will play a significant role in meeting future energy demands, it is unlikely to eliminate the need for oil and natural gas entirely. Fossil fuel demand is expected to continue growing, albeit at a slower rate.

The U.S. Energy Information Administration, in its Annual Energy Outlook 2023, stated 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 Equinor ASA (EQNR Quick QuoteEQNR - Free Report) , Shell plc (SHEL Quick QuoteSHEL - Free Report) and Enbridge Inc. (ENB Quick QuoteENB - Free Report) . Thus, investors should keep an eye on these leading energy companies as they are well poised to gain in the long run.

3 Stocks to Gain: EQNR, SHEL, ENB

Equinor, Norway's energy giant, is actively diversifying its portfolio with a strong focus on offshore wind, carbon capture and hydrogen. The company is leading several major offshore wind projects across Europe and the United States, positioning itself at the forefront of the renewable energy sector. By 2050, the integrated energy major aims to balance the amount of greenhouse gases it emits with the amount it removes from the atmosphere.

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 adapting extremely well to the energy transition. From its diverse business, the company is expecting to achieve net zero emissions by 2050.