The Texas Oil Boom Political, Economic, Social, & Environmental Effects

Political Effects of Oil Because there was too much supply and not enough demand, the government stepped in and created laws to regulate the amount of the nation’s oil production. As the production of oil slowed down, prices eventually shot back up.

Political Effects of Oil Governmental regulation on oil industry to prevent pollution and harm to the environment – Despite the early benefits and excitement of drilling came tremendous waste and pollution – Gushers produced oil uncontrollably, sometimes for days ( runoff soaked into the ground or was channeled into unsafe, makeshift tanks) – Fires were commonplace, often leaping from one well or tank to the next – An 1899 Texas law had attempted to set minimum requirements for curbing waste and pollution to try to rein in the free-wheeling industry – Attempt at regulation unsuccessful – at that time, the oil and gas pumped from a well belonged to the operator (even if drained from beneath another person’s land) Oil production tax began in 1905 – enriched the state treasury

The government regulates the oil industry The Texas government began to regulate parts of the oil industry and also collected taxes on oil production, which earned it a lot of money.

Economic Effects of Oil As population exploded (boomtowns), land owners soon realized they could get rich off the demand of property. In some cases, the price of land increased by $50,000 in only 15 minutes. Creation of 600 oil business companies – Texaco and Mobile, for example. o This created several job opportunities for people in Texas. As more and more people came to Texas, more and more money was pumped into the state economy. Several new industries arose in Texas for different uses of oil. o Gasoline, fuel, oil refinery, lumber, hotels, restaurants, transportation, roads, highways, plastics, rubber, petro- chemicals

Boom Town The oil industry increased the population and development of many Texas cities as boomtowns developed in areas around oil towns.

THE OIL BOOM- Oil was found throughout Texas in the 1860s through the 1880s. The Texas oil industry began to grow after drillers discovered oil in Corsicana in 1894 and the discovery oil at Spindle top in 1901.

20th Century – Cattle, Ranching, Farming and Agricultural jobs decreased due to new technology and changing demands of the population Oil and Gas industry job increased due to the change in transportation and products. Most products today are made from a byproduct of oil. More people migrated to urban areas due to jobs resulting from the oil and gas industry. Service industry jobs increased because more of the population was living in urban areas.

Howard Hughes Sr. – Howard Hughes Sr. developed a new type of drill bit called the rotary drill bit. The bit made it possible to drill through very hard rock to reach oil deep underground. (1909 patent) – The drill bit revolutionized the oil industry which is one of the largest industries in Texas.

Fossil fuels – Rotary Drill Bits - Penetrates medium and hard rock with ten times the speed of any former bit. It allowed deeper drilling on land and ocean. – Directional drilling is the practice of drilling non-vertical wells. Allows drilling to occur in different landforms. Directional drilling – Deep Sea Drilling – Drilling that can occur in the depths of the ocean. New oil reserves have been found and the industry has flourished.

Derricks are towers that support oil- drilling equipment; A refinery is a factory where crude oil from the ground is refined and made into products.

Wildcatters, land speculators, surveyors Wildcatters were typically young men who were willing to look for oil in a dangerous industry. Land speculators determined how much land was worth. Surveyors were educated on how the land could be used and could determine if it was good for oil.

Many oil producers were philanthropists and gave to universities, hospitals, and other charitable organizations. John D. Rockefeller of the Standard Oil company.

Major oil companies developed. Many Oil companies that survived the initial boom grew into major companies such as Gulf oil company and Standard oil company.

Standard oil political cartoon

Import and Export Import Export

Social Effects of Oil Boomtowns sprang up near successful wells. These towns attracted people from all walks of life – rich and poor. These boomtowns exploded overnight after the discovery of oil at Spindletop in Cities like Houston, Midland, Corpus Christi, and Beaumont were some of the boomtowns They would go from one well to the next looking for the next oil “boom.” The boomtowns became overcrowded overnight. Crime, diseases, and lack of safe drinking water were major concerns for people in boomtowns. Water was scarce – it cost more than a barrel of oil. Water and sewer systems were not developed. There were no roads – when it rained or flooded, many people found themselves knee deep in mud.

Environmental Effects of Oil Diseases ran rampant throughout these boomtowns. Fires from the oil caused several acres of land to be burned for no reason. The invisible and odorless gases escaped the oil wells and released into the environment – caused severe illnesses and even death to both workers and people in the towns. Some of the toxic-waste from the petro-chemical industry releases cancer-causing fumes and gases into the air.

This political cartoon reflects political, economic, and social effects of the age of oil.