1. The Age of Oil— Modern Era Begins

2. Into the New Century
In 1900 and 1901, two events involving water (Galveston Hurricane) and oil (Spindletop Gusher) had an impact in Southeast Texas. These events marked the start of a new Era – Age of Oil.

3. Into the New Century
The Age of Oil is characterized by discovery of major oil fields, the growth of the oil industry, and the resulting social/economic changes.
What kind of social/economic changes do you think it brought to Texas?

4. OIL – TEXAS GOLD!
Oil was discovered in the U.S. in 1859 in Pennsylvania
Oil was officially discovered in Texas in 1900, only 100 miles from Galveston.
Lyne T. Barret drilled the first well in Texas, a few miles from Nacogdoches.

5. Oil – Texas Gold—continued
To process the crude oil, Joseph S. Cullinan built a refinery at Corsicana – the first one west of the Mississippi River.
He pioneered the method of using natural gas to heat homes, provide lighting; also using oil to power and run locomotives.

6. Spindletop – the First Gusher
On Jan 10, 1901 – at Spindletop, south of Beaumont, a gusher began shooting out 100,000 barrels of oil per day until it was capped 9 days later.

7. Spindletop – continued
Overnight, Beaumont became transformed, as oil prospectors and drillers flocked to the small city.
Oil companies like Texas Company (later TEXACO) began, and within a few months, Beaumont’s population grew from about 9,000 to over 50,000.

8. If a small town adds thousands of people within a couple of months, what are some problems they will run into?

9. Oil Creates Texas Boomtowns
Early boomtowns were noisy, dirty, crowded, and sometimes dangerous because some of the escaping gas fumes were deadly when inhaled and crime.

10. Oil Creates Texas Boomtowns: Examples
A new settlement near a refinery joined with Goose Creek and Pelly to create the prosperous Baytown.

11. Oil Creates Texas Boomtowns: Examples
Other boomtowns included Humble! Oil was discovered here in 1904.
The Humble Oil Company became the multinational corporation known as Exxon-Mobil.

12. Lumber Booms in East Texas
The oil boom in southeast Texas created a demand for products needed by oil companies – such as lumber to build the oil derricks and buildings.
The derricks—high towers that held the drilling equipment—were made of wood.

13. Lumber in East Texas – cont’d
Lumber operations created thousands of acres of deforested land, which some people believed should be converted into farmland.
Others, such as conservationists like W. Goodrich Jones urged replanting of pine trees for trees cut.
Many Texas leaders urged the development of additional industries
Brickmaking was a successful industry, which used local clay deposits to make high quality bricks.

14. Lumber in East Texas – cont’d
The life of a lumber worker was not easy: long hours, low pay, and frequency accidents
Development of worker’s compensation: system to pay for job-related injuries
Workers often lived in towns owned by lumber company due to companies paying in scrip- nongovernment currency that can only be spent at company store
Why would companies do this??

15. Houston Benefits from Oil Discoveries
Houston became the center of the oil business industry.
Petroleum companies needed the banking, insurance, transportation, and legal services Houston could provide.
On Sept 7, 1914 – the Houston Ship Channel opened which allowed large ships and barges into the port.

16. Dallas Dominates Central Texas
By 1900, Dallas became the major city of central Texas. It was the leading retail (sold directly to consumer in small quantities) center of Texas, Oklahoma, and New Mexico.
Also major banking center due to it being the home of the regional Federal Reserve Bank

17. Dallas Dominates Central Texas
It became a center for shipping and storing cotton and other goods, and for banking, insurance, and legal services. Overall, Dallas developed into a white-collar (jobs not demanding physical labor) city.