Jump to content

Oil price crash threatens Texas university endowments


Recommended Posts

The oil price crash that has hammered the US shale industry is now threatening to put the squeeze on one of America’s biggest university endowments. The University of Texas and Texas A&M University systems have amassed one of the largest college endowments in the US through their economic interest in swaths of land, just over half of which is leased to oil and gas producers. The companies hand over a share of their revenues to University Lands, which manages about 2.1m acres of territory in West Texas for the educational institutions.

Over the past 10 years, the Permanent University Fund (PUF) has reaped $8.2bn from the arrangement, helping to push its assets to $24bn by the end of 2019. But as the economic upheaval unleashed by the coronavirus pandemic has sent the oil price tumbling, the universities have been forced to rip up their forecasts. The royalties the PUF will receive are expected to drop to $500m for the year ending August 2021, according to a spokeswoman for the University of Texas system. “Obviously the royalty flow is not going to be $1bn this year,” says Dale Craymer, president of the Texas Taxpayers and Research Association. “We’re probably going to see much slower growth of the corpus as a result of the oil price drop.”

read more:  https://www.ft.com/content/ab2f0277-1ec0-47ea-a674-9c205fa22c01

Edited by Jonnyeagle
  • Haha 1
  • Eye Roll 2
Link to comment
Share on other sites

Texas and A&M will always be fine financially--huge alumni, major research projects, and gigantic followings. Tech has to have the network money, so if they have it, they are fine. 

To me, the energy fall really kills UH. That school depends on resources outside of network money because of the G5 conference setup.

Beyond that, the rest of us are going to feel it some, but nothing like UH will.

  • Upvote 1
Link to comment
Share on other sites

On 5/6/2020 at 1:41 AM, Green Crazy said:

Oil also effects tech as a lot of their donors are oil men.

Texas won't get hurt too much they have a billion invested in gold on top of everything else.

Tech will take a beating.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.
Note: Your post will require moderator approval before it will be visible.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.



  • Tell a friend

    Love GoMeanGreen.com? Tell a friend!
  • What's going on Mean Green?

    1. 1

      Portal Possibilities???

    2. 79

      BREAKING: Jason Edwards to enter transfer portal

    3. 1

      Portal Possibilities???

    4. 79

      BREAKING: Jason Edwards to enter transfer portal

    5. 0

      Portal Possibilities???

  • Popular Contributors

  • Member Statistics

    • Total Members
      15,383
    • Most Online
      1,865

    Newest Member
    Tank
    Joined
  • GEOVbwaWAAEbd3Q.jpg

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue. Please review our full Privacy Policy before using our site.