2.  Listen to the “Beverly Hillbillies” Theme Song  Answer the following questions:  What were the 2 names given to oil?  Why was it called Black Gold ?  Why was it called Texas Tea ?

3. A discovery that changed Texas forever

4. Examine these photos Describe what’s in the picturesDescribe what’s in the pictures Observations?Observations?

5. Oil was discovered in Texas by Native Americans. They found a black substance seeping from certain places in the earth.

6. They had several uses for oil such as waterproofing canoes. However, the potential for this black substance went untapped until….

7. Anthony F. Lucas began drilling in salt dome deposits near Beaumont in October of 1900.

9. Texas was changed forever when Lucas hit a gusher at Spindletop in January,1901.

10. The Spindletop Oil Field and the oil beneath was a pleasant surprise for Texans.

11. By 1903 more than 400 wells were drilling on the Salt Dome.

12. News of the gusher spread around the world. New people and new industries came to Texas almost overnight.

13. Before 20 th Century - Lubrication of machine parts - Greasing wagon axles - Kerosene for lighting lamps During 20 th Century - Fuel for - Automobiles - Planes, - Tanks - Ships - Farm Equipment - Engine Lubricant

14. MAJOR OIL AND NATURAL GAS DISCOVERIES, 1900–1940

15. Spindletop ushered in the great oil boom in Texas. Oil companies and wildcatters, or speculators willing to gamble and drill in places not known for oil, began drilling.

16. One such wildcatter was Columbus “Dad” Joiner. Dad Joiner went broke several times drilling for oil until... he struck gold in East Texas in 1930.

17. Joiner’s discovery became known as the East Texas Oil Field. In a little over 40 years, this field produced more than 4 billion barrels of oil. It accounted for 1/10 of the oil produced in the United States.

18. Unfortunately, all good things must come to an end. By the end of 1931, the East Texas field had 3,600 wells. Only a couple of years later, the field had 26,000 wells. Sounds good, but...

19. Supply and Demand

20. The rapid growth in oil production reduced the price of oil from $1.10 a barrel to 10 cents a barrel in a matter of a few months.

21. The boom was followed by a bust. Regulation and discoveries in West Texas helped bring Texas out of this initial bust, but the boom/ bust cycle has continued through the years. Today, petroleum is still key to the Texas economy. Boom and Bust

22. Petrochemicals are chemicals or products made from oil and natural gas. One such industry is the petrochemical industry.

23. In closing… Oil Boom Increase in TX population Development of new industries Improvements to TX Transportation

24.  Houston provided banking, insurance, transportation, and legal services for oil companies  Houston became the center of the oil industry  Houston Ship Channel opened the city as a modern port  DALLAS  By 1900 Dallas is the major city in Central Texas  Railroad Companies/Central Location made the city a natural distribution center

25. MAJOR OIL AND NATURAL GAS DISCOVERIES, 1900–1940