These energy stocks are taking measures to prevent their depletion | Whuff News

If the fossil fuel industry doesn’t work now, it could end. That’s because the world economy is moving away from the fossil fuels that cause climate change to clean alternatives. These changes are forcing oil and gas companies to find ways to clean up their practices so they can be part of the solution and not just contribute to the problem.

One of the steps that energy companies take is to invest in it a refreshing spirit projects to help power their operations. It helps reduce the emissions of oil and gas they produce. That makes the business more stable, which can prevent its demise and make it a viable long-term investment.

Working together to reduce costs and emissions

A leading oil and gas producer Pioneering Natural Resources (PXD -1.36%) recently revealed its involvement in a few renewable energy projects. They will provide low-cost, renewable energy for its operations in the Permian Basin and the Texas power grid.

It is partnering with a major producer of renewable energy NextEra Energy (NEE 0.27%) to build 140 megawatt (MW) the power of the spirit manufacturing facility on owned land in Midland County, Texas. A pioneer and his medium service partner Targa Resources (TRGP 0.19%) they have agreed to a power purchase agreement with NextEra to purchase the electricity generated by the facility that will be owned and operated. That will help provide more power to their owners collectively natural gas infrastructure in the Midland Basin and Pioneer’s other field operations when it comes online in 2024.

Pioneer is also participating in the 160 MW Concho Valley Solar project through Targa’s power purchase agreement that supports the facility. It started delivering renewable energy to them last month.

The oil and gas producer is evaluating other potential wind and solar energy developments on land it owns in the Permian Basin. Those future projects could provide it with low-cost renewable energy while further reducing its emissions profile.

Placement of renewable resources to reduce costs and increase sustainability

Many other energy companies have taken similar steps to power their operations with renewable energy to reduce costs and emissions. For example, large oil Chevron (CVX 0.73%) you work together Algonquin Power & Utility (AQN -0.90%) for a solar project to power its oil and gas operations in Texas and New Mexico. They are installing more than 56,000 solar panels on 120 hectares, which should produce 20 MW of renewable energy that Chevron will not need to draw from the grid. Each will hold a 50% stake in the field, which Algonquin will operate, with Chevron buying the power. That project will go online later this year.

Pipe a giant Power transmission (ET -0.16%) signed two power purchase agreements to support solar energy development that will help power its operations. In 2020, it won its first dedicated solar contract with the commissioning of the 28 MW Maplewood 2 project in West Texas, which came online last year. Meanwhile, it agreed to buy 120 MW of electricity from a solar power plant in Northeast Texas late last year. That project should begin production in 2024. With these agreements, Energy Transfer will get about 20% of its electricity from renewable energy.

A pipeline company Williams (WMB 2.17%) invests in solar energy projects to help generate energy for its operations. It currently has 10 projects in progress that should go online by 2024. Williams is investing about $100 million this year in several clean energy projects and could scale up to $250 million annually as more commercial opportunities emerge.

This is a step in the right direction

The fossil fuel industry is working to transform its operations to become more sustainable. One step energy companies are taking is investing in wind and solar projects to help power their operations and reduce costs and emissions. That helps reduce the carbon intensity of the oil and gas industry, which could enable those fossil fuels to play a role in a low-carbon world, potentially preventing the sector from going extinct.

Matthew DiLallo has positions in Energy Transfer LP and NextEra Energy. The Motley Fool has positions on and recommends NextEra Energy. The Motley Fool recommends Pioneer Natural Resources and Targa Resources. The Motley Fool has a whistleblowing policy.

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