23.1 The Birth of the Oil Industry - PowerPoint PPT Presentation

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23.1 The Birth of the Oil Industry

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Title: 23.1 The Birth of the Oil Industry


1
23.1 The Birth of the Oil Industry
2
Search for Oil
  • The demand for oil had risen dramatically after
    scientists had developed kerosene in the
    mid-1800s.
  • Petroleum is a dark thick liquid fossil fuel
  • Fossil fuel is a fuel formed underground from
    plant and animal remains.

3
The Search for Oil
  • The first major U. S. oil strike occurred in the
    late 1850s.
  • An oil company sent Edwin Drake to NW
    Pennsylvania to search for oil.
  • One day when the drill reached 69 feet, a black
    liquid oozed out of the well.
  • Local farmers ran through a nearby town shouting
    The Yankee has struck oil!

4
The Search for Oil
  • Drakes success led others to search for oil.
  • Lyne T. Barret, a Civil War veteran, drilled for
    oil outside Nacogdoches and struck oil at 106
    feet.
  • George Dullnig accidentally struck oil while
    drilling for water in Bexar County.

5
The Search for Oil
  • In 1894, drillers searching for water in
    Corsicana struck oil.
  • Corsicana was now dotted with oil derricks and
    produced 1,450 barrels of oil in 1896.
  • To process the oil, business leaders constructed
    refineries.

6
The Spindletop Strike
  • Patillo Higgins, a brick factory owner believed
    that oil would be found under a salt dome on
    Spindletop Hill (or Big Hill)
  • A salt dome is an underground formation that
    often trap oil and natural gases.

7
The Spindletop Strike
  • Higgins ran an advertisement calling for a
    drilling engineer and Anthony Lucas responded.
  • He agreed that oil was probably beneath
    Spindletop Hill.
  • He started drilling there in June 1900 and found
    traces of oil, but his equipment was not strong
    enough to continue

8
The Spindletop Strike
  • After finding business leaders willing to invest
    in new equipment, Lucas continued drilling.
  • On January 10, 1901, Lucas struck oil.
  • Over the next nine days some 800,000 barrels of
    oil shot out of Spindletop until workers could
    cap the gusher.
  • It could be seen 10 miles away.

9
Boom and Bust after Spindletop
  • The discovery of oil at Spindletop led to a boom
    in the Texas economy and created many jobs.
  • Spindletop oil production peaked in 1902 at more
    than 17 million barrels of oil.
  • That year 20 of the oil produced in the U.S.
    came from Spindletop.

10
Boom and Bust after Spindletop.
  • The discovery of this huge oil field soon
    affected oil prices
  • With large quantities of oil being produced the
    supply of oil outpaced the national demand.
  • As a result the price of oil dropped.
  • The rush of oil companies drilling oil at
    Spindletop also drained its oil reserves.

11
Boom and Bust at Spindletop
  • Most companies formed went out of business when
    their wells dried up.
  • Of those companies that survived, several grew
    into large businesses.
  • The Texas Company became Texaco
  • The Magnolia Petroleum Company and the Humble Oil
    Company were bought by the Standard Oil Company.
  • J.M. Guffey, A.W. Mellon and R.B. Mellon founded
    the Gulf Oil Company.
  • These companies employed thousands of Texans and
    boosted the states economy
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