1. Section 3: Effects of the Oil Boom
Chapter 23: The Oil Boom
Section 3: Effects of the Oil Boom

2. Boomtowns Oil drew thousands of people to oil fields and nearby towns
Beaumont: 9,000  50,000
Sour Lake: village  10,000
Boomtowns crowded, dirty, and rough

3. The Automobile & Petrochemical Industries
The technological development that most assured the success of the oil industry was the automobile, with its internal combustion engine
These engines used gasoline

4. The Automobile & Petrochemical Industries
Petrochemical products:
Synthetic rubber
Plastics
Carbon black (used in tires, ink)

5. The Effects of the Oil Boom
1899: Texas legislature began to try to protect groundwater from oil pollution
Legislature made it illegal to waste oil and natural gas

6. The Effects of the Oil Boom
1917: State gave the Texas Railroad Commission authority to regulate the oil business

7. The Effects of the Oil Boom
1905: State begins collecting taxes on oil
1876: Legislature set aside 1 million acres in West Texas for the Permanent University Fund

8. The Effects of the Oil Boom
Santa Rita No. 1—oil well that struck oil and helped establish the Permanent University Fund
Pictures of Santa Rita No. 1

9. The Effects of the Oil Boom
The Texas A&M University System & University of Texas System use money from the Permanent University Fund

10. The Effects of the Oil Boom
Education in Texas has benefited from the oil industry:
Taxes on oil
Permanent University Fund
Philanthropy

11. The Effects of the Oil Boom
Philanthropy—giving money or gifts for charitable causes
Philanthropists give money to education, hospitals, & the arts
Oil industry created jobs and spurred industry