Enhancing Stock Portfolios for Enterprise Management and Investment in Energy Industry

Abstract

Renewable energy is critical to the energy industry, even more so given the recent surge in oil and gas prices. As a result, the oil and gas sector is constantly preparing for the coming energy transition. This raises the question of when the oil and gas industry should invest in renewable energy sources. This paper examines the history of oil company involvement in renewable energy to address this question. It also establishes and quantifies a relationship between renewable energy investment and oil and gas prices, followed by a projection of renewable energy investment based on oil and gas prices. A decision support system based on crude oil prices and renewable energy stocks is developed to predict renewable energy investment decisions. According to the experiments, the prediction model used provides favorable mean square values compared to other models. An algorithm based on the price of oil determines whether to invest in shares of renewable energy companies. The performance of a company is evaluated based on its expected profitability.