Houston Chronicle said last week that declining crude oil prices could cost a fund that supports 21 members of systems of University of Texas and Texas A&M University at least $300 million. University Lands, state-operated company that oversees oil leases on land owned by the state, expects to send $700 million to the Permanent University Fund this fiscal year – down from $1 billion in 2019 – after oil prices dropped to $20 a barrel during a price war and coronavirus pandemic.
The Chronicle said University Lands is not issuing new leases on the 2 million acres it manages in Permian Basin. And CEO Mark Houser said University Lands is asking operators to delay drilling. “We encourage them to delay new activity. There’s no sense in selling these hydrocarbons at such a low price.” Leases owned by University Lands produced an average of 181,000 barrels of oil and 626 million cubic feet of natural gas per day in 2019. Top 3 producers of about 250 companies on these leases are Felix Energy, Pioneer Natural Resources and Shell.