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Oil and gas stocks are high performers in college endowments

WASHINGTON, January 23, 2013 – Oil and natural gas company stocks outperform all other asset classes in college and university endowments, API Chief Economist John Felmy told reporters this morning in discussing a study for API conducted by the economic consulting firm Sonecon. The Sonecon study was the most recent in a series that found that millions of Americans own and derive the benefits of oil and natural gas company stock and that these stocks were also among the highest performers in large public pension funds:

“The Sonecon study on college and university ownership of oil and natural gas company stock found that for more than a decade America’s colleges and universities have enjoyed strong returns from their investments in America’s oil and natural gas companies. Indeed, university and college investments in oil and gas firms outperformed the endowments as a whole and outperformed every other asset class examined in their endowments. The study also found that while 2.1 percent of endowments in fiscal year 2010-2011 were oil and gas stock, that 2.1 percent generated 5.7 percent of all endowment gains. In fact, according to the study, during that period oil and natural gas stocks achieved returns of almost 53 percent, far better than the endowments’ performance as a whole and the performance of the S&P 500.

“The Sonecon studies tell just part of the story of the industry’s important role in the U.S. economy and how it contributes to the financial wellbeing of the American people. In 2011, for example, while our industry continued to support more than 9 million jobs, it also directly provided $545 billion to the economy, according to a report by PriceWaterhouseCoopers. That included $224 billion in wages, $292 billion in capital investment, and $29 billion in cash dividends to stockholders of publicly traded oil and natural gas companies.”

API is a national trade association that represents all segments of America’s technology-driven oil and natural gas industry. Its more than 500 members – including large integrated companies, exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms – provide most of the nation’s energy. The industry also supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers $86 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
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