Big Take Oil and Gas Made the University of Texas Rich. Can Green Energy Make It Richer?
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Jul 24, 2025 In this engaging discussion, Janet Lorin, a Bloomberg journalist specializing in finance in higher education, highlights how the University of Texas built its massive endowment through vast land holdings and oil resources. She delves into the university's strategic pivot towards renewable energy, emphasizing the need for diversification beyond fossil fuels. Lorin also explores the importance of long-term planning in maintaining financial stability and how Texas is balancing its rich oil past with a sustainable energy future. Expect insights on education funding and innovative energy ventures!
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UT's Oil-Powered Endowment
- The University of Texas' endowment is nearly $50 billion, second largest in U.S. higher education.
- Its wealth largely comes from land and oil resources instead of donations like Harvard or Yale.
Land to Oil Wealth Story
- The University of Texas owns 2.1 million acres of land in West Texas, about the size of Rhode Island and Delaware combined.
- Oil was discovered there in 1923, transforming its land into a valuable asset generating significant revenue.
Constitutional Restrictions on Oil Revenue
- Oil and gas revenue from the land funds capital expenses like new buildings, not operations, due to state constitutional restrictions.
- Surface income from leasing land for infrastructure has fewer restrictions and greater spending flexibility.