CNBC Pro

Invest in the renewable future with these old-school energy stocks, says Wells Fargo

The Valero refinery in Port Arthur, Texas
Michael S. Williamson | The Washington Post | Getty Images

Talk of the energy transition evokes images of wind turbines gently spinning in the breeze, but there's also a big opportunity for traditional oil and gas companies amid the push for renewables.

As investment across the space heats up, Wells Fargo compiled a list of "traditional" energy companies that are devoting more resources toward carbon-reducing technologies, including renewable fuels, carbon capture utilization and storage, R&D efforts, technology seed funds and direct investments.

These companies do, of course, continue to generate the vast majority of their revenue from fossil-fuel based operations, but some believe the firms' large research departments and existing infrastructure give them a head start in areas like carbon capture.

Wells Fargo's list of best ideas includes BP, which it said "clearly leads the energy transition with the biggest strategy shift."

More In Future of Energy

This solar power stock could double as more people install panels, Northland says
CNBC ProThis solar power stock could double as more people install panels, Northland says
Credit Suisse says now's the time to buy two green hydrogen stocks — and gives one over 200% upside
CNBC ProCredit Suisse says now's the time to buy two green hydrogen stocks — and gives one over 200% upside
This lithium stock can rally nearly 40% thanks to the EV boom, according to Piper Sandler
CNBC ProThis lithium stock can rally nearly 40% thanks to the EV boom, according to Piper Sandler