The Oil Boom and Bust Era The Essentials

Spindletop First major oil find in Texas Discovered in Beaumont, Texas 1901 Signaled the start of the Texas petroleum industry/oil boom Discovered by Anthony Lucas, who had been hired by Patillo Higgins

Question: If you had property in Beaumont, Texas in 1901, what would you have done with it after you heard about the discovery at Spindletop? Discuss this with a table partner.

The East Texas Oil Field 1930, Columbus M. “Dad” Joiner discovered the richest oil supply in history He discovered an oil field in East Texas near the town of Henderson This discovery (supply) of oil was so large, that it drove the price of it (demand) so low, the U.S. government had to regulate how much was produced. This discovery led to statewide drilling.

Effects of Oil Boom/Petroleum Industry Created towns near the oil finds. Industries to support the drilling for oil were also created. People from all over the U.S. and the world immigrated to Texas to work in the oil fields This greatly helped the Texas economy Towns such as Odessa, Kilgore, and Tyler experienced rapid growth as people came to work and live there.

Effects, continued The discovery of oil and development of the petroleum industry in Texas initially led the rest of the U.S. and the world to depend on Texas for its fuel needs. Now that petroleum products are produced globally, Texas and the rest of the world depend on one another (interdependence) to meet energy needs. There are also concerns about the possible negative effects of the petrochemical industry on the environment in Texas.

Effects, continued Our economy is very dependent on petroleum products. Work with your table partners to complete the handout grid on petroleum products.

Side Effects Transportation changed. Automobiles became common. As a result, road quality improved. Culture and education improved. For example,the University of Texas and Texas A&M received millions of dollars per year from the profits of the oil industry. (Permanent Fund) Amon G. Carter, who founded the Star-Telegram newspaper, also started a foundation that built and currently operates the Amon G. Carter Museum in Fort Worth. Admission started out and still remains free to all.

In The News… Certainly you have noticed what has recently been happening with conflicts in the Middle East ( Egypt, Libya, Iraq, Iran, etc.) What effects have the conflicts in these areas had on the petroleum industry? Discuss this with a table partner.

So, What’s Next???? If the supply of oil decreases, for WHATEVER reason… Example: If the price of gas goes too high, what effect would that have on the auto industry? What changes in the energy industry could occur?