1. 23.3 Effects of the Oil Boom

2. Boomtowns
The spectacular fortunes made in the oil business drew thousands of people to the Texas oil fields and nearby towns.
Called boomtowns because they grew along with economic booms.
The towns were crowded, dirty and rough places.

3. Texans arrived at these towns seeking work in the oil industry.
Oil field workers lived in tents or wooden shacks.
The dirt streets of the town became rivers of mud when it rained.
Above all, boomtowns were busy places where people were trying to make money.
Boomtowns

4. The Automobile and Petrochemical Industries
Oil companies grew at a time when electricity was rapidly replacing kerosene for lighting homes.
Fortunately for oil producers, new uses for petroleum were being discovered.

5. The Automobile and Petrochemical Industries
Because oil was cheaper than coal, it quickly replaced coal as fuel for steam engines.
The use of automobiles with internal combustion engines was also increasing
These engines use gasoline, and oil by-product

6. The Automobile and Petrochemical Industry
When Americans started to buy cars, the demand for gasoline went up.
The growing popularity of the automobile guaranteed the Texas oil industry millions of customers.

7. The Automobile and Petrochemical Industries
Scientists continued to develop new uses for petroleum.
Petrochemicals made from oil and gas, became an important part of the Texas economy.
Petrochemical products include synthetic rubber, plastics, and carbon black, which is used to make ink, tires and other products

8. Effects of the Oil Boom
The oil boom attracted many young farm workers to jobs in the oil fields.
Most drilling and production jobs were reserved for white workers.
Despite facing discrimination in the oil fields, African American and Mexican American workers found jobs as teamsters and hauling goods to and from the oil fields.
Many oil workers travelled from town to town as they followed new oil strikes

9. The Effects of the Oil Boom
The oil boom affected Texas politics and the environment.
State officials began to pass restrictions designed to control parts of the oil industry.
The legislature passed laws regarding abandoned wells and the protection of ground water from oil pollution.
20 years later, the legislature made it illegal to waste oil and natural gas.

10. The Effects of the Oil Boom
In 1917, the legislature gave the Texas Railroad Commission, an agency originally created to regulate the railroads, authority to enforce laws concerning the petroleum industry.
The commission set standards for spacing between wells and for pipeline transport of oil and gas.
These rules helped prevent over drilling.

11. The Effects of the Oil Boom
The state government also began collecting taxes on oil production in 1905, taking in more than $101,000 in taxes that year.
By 1919, taxes collected on oil production rose to more than $1 million.

12. The Effects of the Oil Boom
This money helped fund the state government and education program for Texas children. ****
Higher education in Texas also benefitted from the state’s oil production.
In 1876, Texas also set aside 1 million acres of land in West Texas for the Permanent University Fund.
Texas universities received money from the sale or use of this land.
Santa Rita #1 oil well struck oil in 1923 and the income went into the Permanent University Fund
The Texas A&M University system and the University of Texas system continue to share the money in this fund.
Texas A&M University
University of Texas

13. The Effects of the Oil Boom
Texas also benefitted from oil producer’s philanthropy – the giving of money or gifts.
Hugh Roy Cullen gave large gifts to the University of Houston and the Texas Medical Center
Texas Medical Center

14. The Effects of the Oil Boom
Walter William Fondren and Sid Richardson both gave money and gifts to Texas schools, hospitals and other social institutions
Walter William Fondren
Sid Richardson

15. The Effects of the Oil Boom
Other oil producer gave generously to the arts in Texas.
John and Dominique de Menil established a collection of more than 10,000 works of art for public display.
Dominique de Menil

16. The Effects of the Oil Boom
Oil producers have provided many jobs and spurred related industries in Texas
POLITICAL, ECONOMIC, AND SOCIAL IMPACT OF THE OIL INDUSTRY ON THE INDUSTRIALIZATION OF TEXAS
Political impact
- Involvement of the Texas Railroad Commission set limits to regulate and control oil prices
Economic impact
Growth of cities and rise of boomtowns - Increased jobs and oil-related services
Development of other parts of the state - Growth of automobile industry
Social impact
- Improved the standard of living in Texas