Oil Stocks- Citi names top stock picks to play infrastructure bill
General Electric’s Paris-based unit GE Renewable Energy introduced the Haliade-X 12 MW in July. Standing nearly 850 feet tall, with three rotors each spanning more than 720 feet, a single Haliade-X can power up to 16,000 homes.
GE Renewable Energy
Lawmakers are hammering out the particulars of the infrastructure bill, but once it’s passed, Citi thinks companies across the energy industry could get a boost.
The bank believes a spending package will eventually be passed, with dollars earmarked for areas including carbon capture, utilization and storage.
“The bill could jump-start an industry that could grow to be larger than today’s domestic oil/gas industry,” the firm’s strategists led by Edward Morse wrote Monday in a note to clients. “It could also accelerate renewables adoption, grid modernization and investments in Hydrogen/EV infrastructure.”
Morse noted that carbon capture typically receives bipartisan support given its necessity in cutting global emissions, adding that it’s a way for traditional oil and gas companies to participate in the energy transition. These companies have the geologic expertise and have infrastructure already in place.
“Thus viable business models of scale are likely to materialize with timing accelerated by passage of key aspects of Biden‘s infrastructure bill,” Citi said.