Top 10 Energy Companies in India in 2022
A set of equities in the energy industry engages with energy production or distribution. Companies exploring and developing oil and gas deposits, oil and gas drilling, and refining make up the energy sector or industry. Integrated power utility firms, like renewable energy and coal, are a part of the energy industry.
The Energy Sector: An Overview
The energy sector is a broad and all-encompassing term that refers to a complex and web of firms involved in the direct and indirect production and distribution of energy to power the economy and facilitate production and transportation. Companies in the energy sector work with a variety of energy sources. They are often classified into one of two groups based on how the energy they produce is sourced:
Non-renewable
- Petroleum products and oil
- Natural gas
- Gasoline
- Diesel fuel
- Heating oil
- Nuclear
Renewable
- Hydropower
- Biofuels
- Wind power
- Solar power
Three Energy prices and the revenues of energy producers are determined mainly by supply and demand.
Oil and gas producers tend to do correctly during high oil and gas prices. However, energy corporations earn less when the price of energy commodities declines. Oil refiners benefit from the lower cost of feedstock to make petroleum products like gasoline when oil prices fall. Furthermore, political events in the energy industry have historically resulted in price volatility.
Exxon Mobil (XOM) and Chevron (CVX), both big international integrated oil companies, are the largest in the U.S. energy sector. Peabody Energy (BTU) was America’s leading coal producer in tonnes produced in 2020.
Types of Energy Sector Companies
The following are some of the different businesses found in the energy industry. Each one has a unique role in supplying energy to businesses and consumers.
- Oil and Gas Drilling and Production
These companies drill for oil and natural gas, pump it and produce it. The extraction of oil from the ground is the most common production method.
- Pipeline and Refining
Oil and natural gas must be transported from the production point to a refinery, where they will be converted into a final product like gasoline. Mid-stream providers are the companies that work in this energy industry sector.
- Mining Companies
Because coal is used for power plants, including nuclear power plants, coal businesses could be considered energy corporations.
- Renewable Energy
Over the years, clean energy has gained traction and investment dollars, and it is expected to become a main feature of the energy sector in the future. Wind and solar energy are examples of renewable energy.
- Chemicals
Although much larger oil companies, like Exxon Mobil, specialize in refining oil and gas into speciality chemicals, many larger oil companies, like Exxon Mobil, are integrated energy producers, which means they create many types of energy have complete control over the process.
Wind and solar power infrastructure continue to improve and become more economical, despite they still merely take into account around 10% of total energy generation in the U.S. As the year draws to a close, here are ten of the best energy stocks to purchase due to rising energy demand and a recovering economy.
Following are the top 10 energy companies in 2022-
- Chevron Corp. (CVX)
- Devon Energy Corp. (DVN)
- Baker Hughes Co. (BKR)
- Halliburton Co. (HAL)
- Energy Transfer L.P. (E.T.)
- Valero Energy Corp. (VLO)
- NextEra Energy Inc. (NEE)
- Shoals Technologies Group Inc. (SHLS)
- Sunrun Inc. (RUN)
- Hannon Armstrong Sustainable Infrastructure Capital Inc. (HASI)
1. Chevron Corp.
Chevron Corporation is a United States-based international energy corporation. It is based in San Ramon, California, and has approximately 180 locations. Chevron is involved in a diverse set of activities in the oil and gas business, including hydrocarbon exploration and production, refining, marketing, transportation, chemical manufacturing and sales, and power generation. One of the Seven Sisters dominated the petroleum business from the mid-1940s until the 1970s.
Chevron is one of the world’s largest corporations and the second-largest oil company in the United States, after ExxonMobil. With annual sales of $94.7 billion and a market value of $190 billion, Chevron was placed 27th in the Fortune 500 in August 2021. In the Forbes Global 2000, Chevron was the 61st largest public company in the world in 2020.
Fuels, lubricants, additives, and petrochemicals are manufactured and sold by Chevron’s downstream operations. The company’s main areas of operation include the west coast of North America, the Gulf Coast of the United States, Southeast Asia, South Korea, and Australia. In the United States, the company produced 791,000 barrels of net oil equivalent per day in 2018.
Chevron has been involved in several issues as a result of its operations, the most notable of which is related to its activities (inherited liabilities from its acquisition of Texaco) in the Lago Agrio oil field, which was the subject of a lawsuit Chevron lost to Ecuadorian residents, which was defended in Ecuadorian court by Steven Donziger. Chevron accused environmentalists and human rights groups of imprisoning Donziger and forcing the U.S. government to deny Donziger due process of law after suspicions of him bribing an Ecuadorian court and criminal contempt charges.
2. Devon Energy Corporation
Devon Energy Corporation is a hydrocarbon exploration business based in the United States. Its corporate operative headquarters are located in the Devon Energy Center, a 50-story building in Oklahoma City, Oklahoma. Its main operations lie in the Barnett Shale, Oklahoma’s STACK Formation, the Delaware Basin, the Eagle Ford Group shale, and the Rocky Mountains.
On the Fortune 500, the company is rated 520th. The Forbes Global 2000 list does not include it.
The company had proven reserves of 752 million barrels of oil equivalent to December 31, 2020.
3. Baker Hughes Co.
Baker Hughes Company is a multinational industrial services company based in the United States, one of the world’s largest oil field services firms and offers services for oil drilling, formation evaluation, completion, production, and reservoir consulting to the oil and gas industry.
Baker Hughes is based in Houston and was founded in Delaware. Baker Hughes Incorporated was the company’s original name until it combined with G.E. Oil and Gas in 2017 to form Baker Hughes, a G.E. Company (BHGE). Then it divested from General Electric in 2019 to become Baker Hughes Company. G.E. no longer owns a large part of Baker Hughes, owning only 30% as of December 2020, and plans to sell the remaining 30% over the next few years.
4. Halliburton Co.
The Halliburton Company is a multinational firm based in the United States. It was the second-largest oil field servicing company globally in 2009 and over 70 countries. It employs roughly 55,000 people and owns hundreds of subsidiaries, affiliates, branches, brands, and divisions. The corporation has businesses in Houston and Dubai and is still registered in the United States.
The Energy Services Group is Halliburton’s most crucial market segment. It has 14 upstream oil service lines itemized that provides upstream oil and gas customers around the world a range of goods and services: Artificial Lift, Cementing, Completion Tools, Multi-Chem, Pipeline & Process Services, Production Enhancement, Production Solutions, Drill Bits & Services, Landmark Software & Services, Sperry Drilling, Testing & Subsea, Wireline & Perforating, and Consulting & Project Management are with the companies represented by Baroid.
KBR, a former Halliburton subsidiary, is the main refinery, oil field, pipeline, and chemical plant construction business. On April 5, 2007, Halliburton stated that it had sold the division and ended its corporate tie with KBR, its contracting, engineering, and construction unit.
The company has been involved in some controversies, including its involvement with Dick Cheney – as U.S. Secretary of Defense, then CEO of the company, then Vice President of the United States – and the Iraq War, and the Deepwater Horizon, for which it agreed to pay litigants $1.1 billion to resolve pending legal matters against it.
Between 1994 and 2004, KBR, a subsidiary of Halliburton, paid bribes to high-ranking Nigerian officials. Halliburton has agreed to pay $382 million to settle the bribery lawsuit with the US Justice Department as part of a settlement agreement.
On August 1, 2014, Jeff Miller was named President of Halliburton; then, on June 1, 2017, he was named CEO, succeeding Dave Lesar.
5. Energy Transfer L.P.
Energy Transfer L.P. is a natural gas and propane pipeline delivery firm. It is based in Dallas, Texas. Ray Davis and Kelcy Warren formed the company in 1995, and Ray Davis is still the Chairman and CEO. Dakota Access, LLC, the firm in charge of creating the contentious Dakota Access Pipeline, owns 36.4 per cent of the company.
Energy Transfer owns controlling interests in Sunoco L.P.,
100% of Sunoco Logistics Partners Operations L.P, the general partner of USA Compression Partners L.P.,
100% of Lake Charles LNG, Near Lake Charles, Louisiana, the company owns an LNG import terminal and regasification facility,
and 9,400 miles of natural gas transportation pipelines with a daily capacity of approximately 21 billion cubic feet and three natural gas storage facilities in Texas and 12,200 miles of interstate natural gas pipelines with a daily transportation hold of 10.3 billion cubic feet (290 million m3),
36.4 per cent of the Dakota Access Pipeline and the Energy Transfer Crude Oil Pipeline,
60 per cent of the Bayou Bridge Pipeline,
50 per cent of the Florida Gas Transmission pipeline,
100 per cent of the Trunkline Pipeline,
100 per cent of the Transwestern Pipeline,
100 per cent of the Transwestern Pipeline,
100 per cent of the Trans.
6. Valero Energy Corp.
Valero Energy Corporation is a Fortune 500 international transportation fuel, petrochemical goods, and marketer. The company’s headquarters are in San Antonio, Texas.
The company owns and operates 15 refineries in the United States and Canada, including one in Wales, 11 ethanol facilities with a combined production hold of 1.2 billion U.S. gallons per year, and a 50-megawatt wind farm with a total throughput hold of about 3 million barrels per day Valero was one of the largest retail operators in the United States before the 2013 spinoff of CST Brands, with approximately 6,800 retail and branded wholesale outlets under the Valero, Diamond Shamrock, Shamrock, Beacon, and Valero brands in the United States, Canada, the United Kingdom, and the Caribbean.
7. NextEra Energy Inc.
NextEra Energy, Inc. is an American energy corporation with 58 G.W. of generating size (24 G.W. from fossil fuel sources), revenues of over $18 billion in 2020, and 14,900 workers across the United States and Canada. By market capitalization, it is the largest electric utility holding business. The company’s subsidiaries include Florida Power & Light (FPL), NextEra Energy Resources (NEER), NextEra Energy Partners, Gulf Power Company, and NextEra Energy Services.
FPL, the largest of the subsidiaries, provides rate-regulated power to about 5 million accounts, or an estimated 10 million people, nearly half of Florida and is the country’s third-largest electric utility company. It is the world’s largest renewable energy generator from the wind and sun.
NextEra Energy Resources owns natural gas, nuclear, and oil-fired power stations. By 2020, fossil fuels and non-renewables would account for roughly 41% of NextEra Energy’s generating hold. The company was placed 167th on the Fortune 500 list of the top U.S. corporations by revenue in 2018.
The predecessor company, Florida Power & Light Firm, was created in 1925. As part of its plan to diversify its operations, it reformed as FPL Group Inc. in 1984. In March 2010, FPL Group changed its name to NextEra Energy Inc.
Nextera Energy is a Florida-based company.
Politics-
NextEra Energy contributed $1 million to a Super PAC supporting Jeb Bush’s presidential campaign during the 2016 Republican Party presidential primaries.
NextEra pushed hard against a bill in 2021 that sought to connect hydropower from Canada to the New England grid. The hydropower plant in Yarmouth would have faced competition from NextEra’s oil-fired power plant.
8. Shoals Technologies Group Inc.
Shoals Technologies Group, Inc. is a prominent provider of solar, energy storage, and eMobility electrical balance systems (EBOS) solutions. Since its inception in 1996, the business has provided cutting-edge technology and systems that provide its customers to improve installation efficiency and safety while increasing system performance and reliability. Shoals Technologies Group, Inc. is a leader in the renewable energy market, with over 20 G.W. of solar systems installed all over the world.
9. Sunrun Inc.
Sunrun Inc., based in San Francisco, California, provides residential solar panels and home batteries.
Sunrun was formed in January 2007 by Lynn Jurich, Ed Fenster, and Nat Kreamer, with a business concept that offers clients a lease or a Power Purchase Agreement (PPA), in which households pay for electricity usage rather than purchasing solar panels outright, lowering the initial outlay. Installation, maintenance, monitoring, and repairs are all handled by Sunrun.
In June 2008, the company received $12 million in venture capital funding from a consortium of investors led by Foundation Capital. Sunrun raised $18 million in a Series B round of fundraising sponsored by Accel Partners and Foundation Capital in 2009.
Following the bank’s $105 million in project finance in 2008, the company obtained an additional commitment of $90 million in tax equity from U.S. Bancorp in 2009. Sunrun agreed to a $100 million deal with PG&E in June 2010. Following the transaction, Sequoia Capital invested $55 million in the company.
The startup raised $150 million in May 2014.
Sunrun went public in 2015 (Nasdaq: RUN) at $14 per share, with a $1.36 billion market capitalization, and introduced its BrightBox product in Hawaii. It began selling BrightBox in California the following year.
Sunrun formed strategic cooperation with National Grid plc in January 2017.
According to the Wall Street Journal, the Securities and Exchange Commission (SEC) investigated Sunrun and SolarCity in May 2017. They were prompt in disclosing cancelled contracts, a criterion that investors use to assess how healthy companies are operating.
Contract cancellations with Sunrun accounted for about 40% of all cancellations in 2017.
Sunrun expanded its solar and battery service to the island of Puerto Rico in July 2018. Sunrun surpassed Solar City as the largest solar, storage, and energy services firm in America, operating in 23 states, the District of Columbia, and Puerto Rico.
Sunrun installed 1575 MWp of new solar assets in 2018, up from 1202 in 2017.
Sunrun announced in July 2020 that it would buy Vivint Solar for $3.2 billion. Following approval by regulators and owners of both firms, the purchase was completed in early October 2020, resulting in a $22 billion valuation.
10. Hannon Armstrong Sustainable Infrastructure Capital Inc.
Hannon Armstrong (NYSE: HASI), based in Annapolis, Maryland, is the first U.S. public corporation dedicated entirely to climate solutions investments, financing leading companies in energy efficiency, renewable energy, and other sustainable infrastructure areas. Hannon Armstrong’s make climate-friendly investments with risk-adjusted returns that are outstanding, more than $8 billion in managed assets.
Their aim is for every investment to better our climate future, which is why we ask that all potential investments be carbon neutral or harmful or have some other tangible environmental benefit, like reducing water consumption.
They’ve developed a climate-positive investment thesis based on the following theories, based on decades of investment experience spanning many rate and business cycles, intermittent governmental backing for carbon reduction, and several “boom and bust” cycles of clean energy sector expansions:
- More efficient technology is more productive, resulting in larger economic returns.
- Compared to larger, centralized utility-scale investments, a portfolio of smaller investments has lower portfolio risk. This is due to trends of increasing decentralization and digitalization of assets.
- Lowering possible regulatory and social costs can be achieved by better internalizing externalities and investing with scientific consensus and society’s broad ideas.
Deep Experience and Strong Partnerships-
Hannon Armstrong have a management team has more than 35 years of relevant industry knowledge and experience. For years, they’ve worked with the top energy service companies (ESCOs), manufacturers, project developers, utilities, owners, and operators. Their strategy for generating recurrent, programmatic investment opportunities is to leverage these relationships.
Edited and proofread by Ashlyn
