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Chapter 20 The Oil Industry 1900-1940 Essential Question.

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Presentation on theme: "Chapter 20 The Oil Industry 1900-1940 Essential Question."— Presentation transcript:

1 Chapter 20 The Oil Industry Essential Question

2 Section The Oil Industry In Texas The Oil Industry in Texas began in 1901 with the Spindletop oil discovery. This legendary oil strike was the start of a new era of growth for Texas.

3 Just FYI: Standard Oil Company Started by John D. Rockefeller in Ohio in 1870 Goal: control entire oil industryhe bought out all of his competitors and cut prices…monopoly By 1880, he controlled 90% of oil industry US Government had to step in and broke up Standard Oil Company in 1911 Rockefeller was estimated to be worth about 189 billion dollars

4 Oil Becomes an Industry For many years, oil had no value because of no cars, etc…used to lubricate machinery and produce kerosene Spaniard used oozing oil to stop leaks on boats But, when railroads began using oil in 1900s, there was a big demand for it Pennsylvania was first state to produce oil (1859) Texas 1 st successful oil well: Melrose Petroleum in Nacogdoches…not produce enough so soon abandoned

5 Oil Becomes an Industry, cont Texas 1 st successful oil well: Melrose Petroleum in Nacogdoches…not produce enough so soon abandoned 1894: drillers struck oil reserve in Corsicana, TX….this discovery of oil encouraged more drilling in Texas Petroleum: Oil Reserve: supply of oil or gas that is known to exist but has not been used

6 One Texans Vision Patillo Higgins – Dreamed of striking it rich in Texas – Had brick company in Beaumont – Thought there was oil in salt dome on Spindletop Hill – Geologists didnt think there was much on Gulf Coast of Texas Geologist: person who studies origin, history, and structure of earth

7 One Texans Vision, cont – But Higgins trusted his instincts and formed Gladys Oil Company – He hired an engineer named Anthony Lucas to help him – Lucas leased the land at Spindletop Lease: contract out (like rent) land to drill on – After a couple of failed attempts at drilling, Lucas got help from people who started Corsicana Oil Field

8 One Texans Vision, cont January 10, 1901: hit oil – Oil started shooting up 100 feet in air – Oil shot up into air for 9 days until well was capped – Oil formed a big lake around the derrick Derrick: tower over well that supported drilling equipment – Had to put up barrier around lake of oil to keep well from catching fire

9 Spindletop Anthony Lucas

10 Video: The Discovery of Oil in Texas

11 Spindletop Oil Boom Spindletop Well was named Lucas #1 – Produced 70, ,000 barrels oil/day After that discovery, people rushed into area and started drilling – An oil boom started Boom: time of economic growth Within weeks, area was covered with derricks – So close together, people could walk from one derrick to anther – Now have drilling rigs, not derricks – Can only have one well for every 40 acres

12 Effects of Spindletop Discovery Spindletop discovery led to over 600 oil companies starting up New oil companies started but most started up in Houston because Houston had better railroads Also, inspired search for oil in other parts of Texas Texas economy became oil based

13 Natural Gas, An Important Resource Natural Gas: fossil fuel often found with oil At first, oil companies didnt know value of natural gas So, oil companies burned off natural gas because no way to transport it Then pipelines were built to move natural gas to storage tanks and then to markets to sell it

14 Section 2 The Oil Boom After Spindletop After Spindletop, the race was on to discover oil in other parts of Texas. In just 30 years, wells in all regions of the state made Texas the worlds leader in oil production.

15 The Rise of Boomtowns New industries, boomtowns, etc grew as people figured out more ways to use oil – Boomtown: town that springs up very quickly as a result of rapid economic growth Boomers were people who went from boomtown to boomtown to drill wells to make money quickly…then they would move on Boomtowns had – High crime rate; very rowdy – diseases like typhoid, dysentery, etc as result of no sewer systems and clean drinking water

16 Necessity, Texas Typical Boomtown

17 Life in the Oil Patch Oil rigs operated 24/7 Long hours and good pay Dangerous conditions – Slick with oil – Danger of explosions – Danger of gases that were emitted – Equipment

18 Oil Creates New Industries After Spindletop, search for oil expanded into other parts of Texas Wildcatters discovered oil in Ranger, Breckenridge, Desdemona, Goose Creek, Humble, etc – Wildcatter: person who drills oil wells hoping to find wells in areas not known to be oil fields Oil was discovered in Borger, Amarillo, Big Lake, Wink, Monahans, McCamey and the Permian Basin in Midland/Odessa area

19 The East Texas Oil Field 1930: man named Columbus Dad Joiner struck oil in East Texas near town of Henderson Joiner known as father of East Texas Oil Field East Texas produced incredible amount of oil – About 900,000 barrels of oil/day – Covered 5 counties and produced 1/3 of nations oil – Towns of Longview, Kilgore, Tyler…became oil towns

20 Major Oil and Natural Gas Discoveries,

21 Section 3 The Impact of Oil on Texas The oil industry has been very important to the growth and development of industry, technology, culture, and education in Texas.

22 Effects of the Oil Boom Oil companies started – Houston – Midland Oil refineries in Texas started – Corpus Christi – Beaumont – Port Arthur – Baytown Transportation ability increased as result of oil Petrochemical Industry: started up as result of oil industry – Petrochemical: chemicals made from petroleum or natural gas

23 Petrochemical Industry 1920s: scientists figured out how to remove chemicals from oil to make everyday things During World War II: scientists figured out how to make synthetic rubber (used for tires) – Synthetic Rubber: rubber that comes from chemicals rather than rubber plants

24 The Development of Transportation Oil boom led to improvements in Texas transportation – Cars invented – Better roads – Federal Road Act (1916) State Highway Departments – Developed road and highway systems – Led to more developments: hotels, restaurants, gas stations, etc

25 Travel in Texas US military bases started in Texas because of oil and wide open spaces – Oil: produced jet fuel for fighter planes in World War I and II Commercial Airlines Aircraft production – Amon G. Carter (oil executive and newpaper owner) helped start aircraft production in Texas

26 Oils Contribution of Culture and Education Many museums, art galleries, colleges and universities were started by people and companies with ties to oil industry – Hugh Roy Cullen: started University of Houston and Houston hospitals – Amon G. Carter: started foundation for contributing money to cultural and educational purposes Amon G. Carter Museum in Ft. Worth: always free – Oil industry supports public education with oil profits going to Permanent School Fund

27 Texas Railroad Commission State agency that regulates the oil and gas industry in Texas

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29 TIMELINE 1900– Anthony Lucas strikes oil at Spindletop 1902 Spindletop produces over 17.5 million barrels of oil 1914 Houston Ship Channel opens 1916 Federal Aid Road Act is made law 1930 C. M. Dad Joiner makes a major oil discovery in East Texas 1936 Texas has more than 1.5 million vehicles 1936 State highways total more than 21,000 miles


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