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Oil and gas stocks help college endowments

Hydrocarbon Engineering,

API Chief Economist John Felmy has said that oil and natural gas company stocks outperform all other asset classes in college and university endowments. This information is based on a Sonecon study, which is 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 wile 2.1% of endowments in fiscal year 2010 – 2011 were oil and gas stock, that 2.1% generated 5.7% of all endowment gains. In fact, according to the study, during that period oil and natural gas stocks achieved returns of almost 53%, far better than the endowments’ performance as a whole and the performance of the S&P 500.

‘The Sonecon studies tell part of the story of the industry’s important role in the US 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 US$ 545 billion to the economy, according to a report by PriceWaterhouseCoopers. That included US$ 224 billion in wages, US$ 292 billion in capital investments, and US$ 29 billion in cash dividends to stockholders of publicly traded oil and natural gas companies.’

Edited from press release by Claira Lloyd.

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