Harvard University may lose the title of the nation’s wealthiest university, Bloomberg reported.
The potential new wealthiest university is the University of Texas, which may overtake Harvard’s $53.2 billion endowment, as of June 21. The value of the Texas endowment at that time was $42.9 billion.
The source of the new wealth: crude oil and natural gas. Bloomberg reports that with rising prices, Texas earns $6 million a day on 2.1 million acres it owns in the Permian Basin.
At a time that other colleges are shedding fossil fuel investments, Texas is having a windfall. “The University of Texas has a cash windfall when everyone is looking at a potential cash crunch,” said William Goetzmann, a professor of finance and management studies at Yale University. “Adjusting your portfolio for social concerns is not costless.”
The article said that it is “likely” that Harvard’s endowment will lose money this year.