Bolstered by booming oil prices, the University of Texas' endowment hit $31 billion in value this summer, according to data compiled by Bloomberg News — making UT's endowment second only to Harvard University's in size among the country's institutions of higher education.

Harvard's endowment had a value of $39.2 billion, according to Bloomberg's data. Yale University, whose endowment often tops UT's in value, was at $29.4 billion, though the Texas system's more than 235,000 students dwarf Yale's 12,300.

The price of oil has dropped since the fall, a change not reflected in Bloomberg's numbers, which are current through June 30.

The Texas endowment dates back to 1876, when the state set aside more than 1 million acres of West Texas land to support the development of the UT and Texas A&M University systems. The value of the fund shot up with the discovery of oil, and the advancement of hydraulic fracturing technology. In 2010, the fund was worth some $10.7 billion. Last year, it was up to $19.5 billion.

Typically, royalties earned off the land are invested in stocks, bonds and other assets by the nonprofit University of Texas/Texas A&M Investment Company, or UTIMCO. About 5 percent is paid out each year to UT and A&M, with UT receiving two-thirds of the distribution — this year, a record $1 billion. From there, the system can spend its oil money on capital projects and administration, and the remainder is sent to the system's flagship Austin campus.

According to Bloomberg, Texas Christian University, in Fort Worth, and Abilene Christian University also saw their endowments benefit from energy holdings.

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