The University of Texas System leases out the country’s largest oil field to some 250 drillers.
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The University of Texas could become the richest school in the US, topping Harvard’s $53.2 billion endowment to occupy the No. 1 spot, Bloomberg reports. Why? Because at a time when most schools’ investment portfolios are falling faster than Comm 101 lecture attendance, the University of Texas System has something they don’t: 2.1 million acres of oil-rich land.
How the UT System makes so much money: The group leases out the country’s largest oil field to some 250 drillers, including giants like ConocoPhillips, which pump out 300,000 barrels of crude oil per day and pay the university System royalties.
And it’s a great time to be in the oil biz. The UT System is expecting its biggest payout this year thanks to steep oil prices, which hit $120 a barrel in June. The UT System brings in roughly $6 million a day from its oil assets.
Big picture: UT’s trip to the top is a lonely one, as more universities are opting out of fossil fuel investments following activist and public pressure. Just last year, Harvard and Yale promised to limit fossil fuel industry investments.
Fun fact: UT isn’t the only university with a nontraditional investment portfolio. Emory is rolling in Coca-Cola shares, Northwestern’s endowment is packed with royalties from the pain med Lyrica, and even Harvard has owned some California vineyards since 2012.—MM
