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Spindletop

Spindletop. A discovery that changed Texas forever. Spindletop Ushers in the Oil Industry. Main Idea: The oil gusher at Spindletop helped establish the huge and profitable oil industry in Texas. An Industry Takes Shape.

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Spindletop

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  1. Spindletop A discovery that changed Texas forever

  2. Spindletop Ushers in the Oil Industry Main Idea: The oil gusher at Spindletop helped establish the huge and profitable oil industry in Texas.

  3. An Industry Takes Shape -American Indians, Spanish explorers (Moscoso) & settlers often found oil in natural springs -Thought it cured rheumatism, sprains, and baldness! “I don’t understand… I rubbed oil on my head for weeks!”

  4. The First Oil Fields -Melrose Petroleum Oil Co. the first oil producing well in TX (10 barrels a day) -1890’s Corsicana field raised interest to drill in Texas (produced > 60,000 barrels a year) -Rising prices & demand for gasoline-powered cars spurred this growth **January 1901……

  5. Who Am I?

  6. Who Am I?

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

  8. -Drilling started in Oct. 1900 -No sign of oil -Lucas hit a gusher at Spindletop on January 10, 1901. -Gusher shot out 100,000 barrels of oil a day! -More than all the other wells in the U.S. combined!!! Lucas gusher on Jan. 10, 1901

  9. News of the gusher spread around the world. Oil workers, financiers, & onlookers came to see the gusher. Within two yrs., Spindletop produced 17.5 million barrels of oil. As the number of wells grew, production declined. by 1904, production fell to <4 million barrels.

  10. The Boom Changes Texas -Beaumont population soared from 9,000 to > 30,000 -Land prices rose quickly -Attracted wildcatters: Oil seekers who took great risks by drilling in areas not known to have oil. -Wildcatters hired roughnecks: worked the oil fields -Many oil companies failed. *Texas Fuel Company in Beaumont became Texaco – a giant in the industry.

  11. Growth of the Auto Industry -1897 first Oldsmobile produced -General Motor Company was soon Formed -1903 Henry Ford started Ford Motor Company *Within 10 yrs. Ford made half the cars in the nation!

  12. Demand for cars… Increased demand for… gasoline!!! In turn, a cheap and ample supply of fuel increased the demand for autos!

  13. Economic Changes -Oil industry grew to meet surging demand!! -Pipelines transported oil from fields to the refineries -Workers refined crude petroleum into gasoline and kerosene -Improved roads enabled more people to drive cars -New jobs arose -Houston Ship Channel opened in 1914

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

  15. More Discoveries Across the State *Wildcatters made many oil discoveries in the Gulf Coastal Plains -Also in North, Central, and West TX -This included wildcatter C.M. “Dad” Joiner He struck gold in East Texas in 1930 and opened the world’s largest oilfield.

  16. 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.

  17. 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.

  18. The rapid growth in oil production reduced the price of oil from YES!! $1.10 a barrel to NO! Why Me? 10 cents a barrel in a matter of a few months!!

  19. 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. Boom and Bust Today, petroleum is still key to the Texas economy.

  20. However... we have had to diversify our economy and develop other industries so that we are not totally dependent on oil.

  21. The Impact of Spindletop on Texas Spindletop Gusher *New jobs are created *Pop. Of Beaumont explodes *State revenue increases *Land prices in Beaumont rise *Auto industry grows *Oil companies form *Cities grow around new oil refineries

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