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Oil Becomes and Industry

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Presentation on theme: "Oil Becomes and Industry"— Presentation transcript:

1 Oil Becomes and Industry
In the 1600s and 1700s, Spaniards used oil to fix the leaks in their boats. In the 1800s farmers complained that oil ruined their crops. Railroads used oil for fuel in the 1880s. Melrose Petroleum Oil Company drilled the first successful oil well in Nacogdoches County. However, it only produced 10 barrels of oil and was soon abandoned. In 1894, a major reserve was drilled in Corsicana – this was the beginning of drilling for oil in East Texas. Today, we depend on oil to lubricate machinery to produce manufactured products and to operate our vehicles.

2 One Texan’s Vision Pattillo Higgins had a dream of striking it rich one day. He began with a brick business and then started an industrial town on nearby Spindletop. He thought there was oil hidden underground beneath the salt dome. He creates the Gladys City Oil, Gas, and Manufacturing Company whose main purpose was to drill for oil and develop the area around the hill. Pattillo Higgins resigned from the company after several failed attempts. He still believed oil existed under Spindletop Hill and put several ads in a newspaper trying to find a geologist who would help him to exploring the salt domes of Spindletop Hill for oil.

3 The Spindletop Gusher Engineer Anthony Lucas answered Pattillo Higgins ad and leased land on Spindletop Hill Lucas drilled to a depth of 575 feet before his equipment collapsed. Anthony Lucas convince the Pennsylvania that had drilled in Corsicana Texas to help them drill and provide them with heavier and tougher equipment to continue drilling on the Spindletop location in October of 1900. In January of 1901, a massive oil strike was hit and Spindletop became the largest reserve of oil that had ever been discover in that time period. The Spindletop gusher shot more than 100 feet into the air for nine days until the well was finally capped. Oil from the gusher created a large lake around the base of the derrick.

4 Spindletop Oil Boom The well was named Lucas #1– it produced between 70,000 and 100,000 barrels of oil a day –more than any other well in the world during that time period. Oil rigs began to spring up all over Gladys City and Spindletop. Land owners were able to sell their land for several times the value of it just because of the possibility of oil being underground. Large oil companies move to Houston as the base of their operations because Houston had better rail connections.

5 Effects of the Spindletop Discovery
The drastic increase in drilling at Spindletop resulted in overdrilling and Spindletop was basically drilled out in just a few years. The drilling at Spindletop led to the creation of over 600 oil companies including Texaco, Gulf, and Mobil. The strike at Spindletop inspired statewide search for more oil drilling sites. Spindletop changed the future of Texas and the future of transportation and industry of the world.

6 Natural Gas: An Important Resource
Oil wasn’t the only natural resource being drilled for in Texas. The oil fields also produced natural gas. However, there were no pipelines to transport this valuable clean-burning fuel. It would be many years later before the benefits of natural gas would be realized.

7 The Oil Boom after Spindletop: Oil, Oil Everywhere
The oil boom of the 1920s and 1930s led to the development of many rural areas. The population, new industries and the economy grew at tremendous rates. As oil grew as a fuel, more industries began using it as a fuel to run their machinery. Flour mills, brick and tile factories, ice factories, hotels, railroads, and electric car companies also switched to oil for fuel.

8 The Rise of Boomtowns Boomtowns attracted not only businesspeople but also ordinary farmers whose crops had failed. Thrill-seeking drifters were called boomers who worked only on the oil rig long enough for oil to be struck and then they were off to the next oil rig. Boomtowns were often noisy and crowded. Crime, disease and lack of clean drinking water were problems in boomtowns. Without clean and sanitary water or sewer systems, dysentery, and typhoid fever were common illness in boomtowns.

9 Life in the Oil Patch Most oil field workers had to work 12 hour shifts because the well ran for 24 hours straight – operation of the rig never stopped! Dangerous gas fumes and slick surfaces made work dangerous. A invisible and odorless gas escaped from the wells that would burn your eyes, cause you vision problems and even cause illness or death. Not to mention sharp heavy equipment posed danger to workers. The well could always run dry as quick as it began gushing which meant no job stability for the families of oil field workers. Oil field families moved around from one oil rig to another oil rig.

10 Oil Creates New Industries
With the production of oil, refineries are needed to make the oil into a usable product. Refineries pop up all over the Houston Ship Channel, Beaumont, Port Arthur, and Corsicana. The Humble Oil and Refining Company – later Exxon/Mobil built the largest refinery on the Gulf Coast. Other oil-related services and supply industries developed. Manufacturing and selling of oil field tools and equipment became important business as did repairing oil field tools and equipment.

11 The Search for Oil Expands
Oil production expands from the Gulf Coast to other areas of the state. Central Texas and West Texas become important drilling areas of the state. A major boom develops in the Permian Basin area of West Texas.

12 The East Texas Oil Field
In 1930, Columbus M. “Dad” Joiner made one of the richest oil discoveries in history. He believed there was oil in Rusk County despite geologist claims. Joiner continued his drilling in near Henderson and on the Daisy Bradford No. 3 well, he struck the largest oil field in the world at that time – some 40 miles in length. Because people believed he was the “Dad” of the oil business in East Texas, he was given the nickname “Dad” Joiner and even had a town named after him, Joinerville.

13 Texas Oil Affect the World
So much oil was produced by the Texas oil booms in East and West Texas that the oil market became flooded. The country falls into a national depression and the prices of oil dropped drastically. To try and stop the downslide of oil prices, the government sat regulations on the amount that could be produce or drilled for. Some companies tried to drill oil when they were told not to by the government regulations as a result it was illegal oil and called hot oil. The regulated amount of oil meant that the lower production meant higher oil prices that had effects on the automobile industry, shipping costs, and travel.

14 The Impact of Oil on Texas:
Effects of the Oil Boom Midland and Houston are homes to major oil companies. Corpus Christi, Beaumont, Port Arthur and Baytown are homes to major oil refineries. Even the University of Texas at Austin had an operating oil well on its campus for many years. Oil has a drastic impact on our lives today. Just about everything you own or use has some sort of oil based chemical in it.

15 The Petrochemical Industry
Chemists in the 1920 and during World War I found many ways to use petroleum products in everyday household items. Petrochemicals were used to make explosives for World War I and synthetic rubber for tires. The only problem with producing petrochemicals is the toxic waste it creates each year. It also produces cancer-causing fumes and gases into the air.

16 The Development of Transportation
With out the development of oil and the ability to refine it into a usable product, automobiles would not be as popular as they are today. Oil production made automobiles a practical means of transportation. Streets and highways began to development with the increased numbers of automobiles on the roads. In 1903, a request for a highway system began. In 1916, the Federal Aid Road Act provided Texas with a highway department.

17 Travel in Texas Air travel was seldom seen in Texas before World War I. With oil as an available fuel source, air travel became more common. The U.S. military created air bases in Texas because of the wide-open spaces. Airline and airplane companies soon followed the military’s lead in opening air bases in Texas. Amon Carter, an oil executive and newspaper owner, helped to make Fort Worth the center of airplane production. Howard Hughes, a Houston manufacturer of oil drilling equipment set a world air speed record in the 1930s.

18 Oil’s Contributions to Culture and Education
Many universities, colleges, museums, and art galleries owe their existence to individuals and companies in the oil field industry. Hugh Roy Cullen from Houston donated more than $11 million to the University of Houston and to Houston hospitals Amon Carter of Fort Worth established Amon G. Carter foundation for cultural and educational purposes and provided the building of the Amon Carter Museum in Fort Worth. The University of Texas in Austin and Texas A&M University have received millions in dollars through the state’s Permanent University Fund.


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