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The Oil Boom

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The Oil Boom And other events from 1880-1920 AGE OF OIL Spindletop – This 1901 strike in Beaumont was the first “gusher” oil discovery in Texas. Suffrage – Voting rights. Prohibition – The Eighteenth Amendment to the U.S. Constitution that made it illegal to make or drink alcohol. Texas Railroad Commission – State agency created to oversee and regulate railroads and the oil industry in TX. Texas Equal Suffrage Association – Organization founded in Houston to advocate for voting rights for women. Galveston Hurricane of 1900 – The deadliest hurricane in U.S. history; caused the city to erect a sea wall to protect the city from flooding in future hurricanes. Boomtown – Towns that developed wherever oil was struck; they were notoriously dirty, crowded, and rough. Sour Lake – Oil strike in 1903 made by the Texas Oil Co., later called Texaco. Petroleum – Naturally occurring liquid fossil fuel commonly called oil. James Hogg – Governor of Texas who set up the Texas Railroad Commission and protected citizens from unfair business practices. Howard Hughes Sr. – Businessman who helped to invent the two-cone rotary drill bit, which allowed further oil exploration and drilling in Texas. Texas Farmers Union – Union created after the failure of the Populists’ Party. They were advocates of farmers. League of United Latin-American Citizens – Organization founded in Corpus Christi to support the rights of Latin Americans in the U.S. Progressivism – Movement in America at the turn of the century that encouraged social, political, and economic reform. The Oil Boom © Tara Fountain WARM-UP What is oil and how is it created: ? How is oil created? Oil or petroleum is viscous black liquid used as a fuel source; it is created by the remains of organic matter (dead plants/animals) under pressure over thousands of years. THINK ABOUT IT How do we use it? : Name 3 ways we use oil each day? Step 1 On your note sheet, choose Which products are created from oil MAJOR ERAS IN TEXAS HISTORY THE AGE OF OIL Hurricane of 1900 James Hogg Spindetop Growth of urban areas Populism Women’s Suffrage Progressive Era Temperance Movement Texas Railroad Prohibition Commission World War I AGE OF OIL 1880 – 1920 Progressive Era 1900 – Hurricane of 1900 1901 – Spindletop 1917 – 1918 World War I 1918 – 1931 Prohibition 1920 - 19th Amendment – Women’s Suffrage The Oil Industry in Texas •Railroads began using oil for fuel in the 1880’s, which increased the demand for the fossil fuel. •Pennsylvania was the first state to produce American Oil in 1859 •Seven years later Melrose Petroleum Oil Company drilled Texas’s first successful oil well in Nacogdoches but it wasn’t a long term success. •In 1894 a major reserve in Corsicana was tapped creating the first major oil supply in the state. This discovery encouraged drilling across East Texas. •On January 10, 1901, Anthony Lucas hit the largest oil reserve the world had ever seen at Spindletop. •The discovery at Spindletop began the first of many oil booms in Texas. 1894: Oil discovered at Corsicana Effects of the spindletop discovery •The large number of wells at Spindletop caused over-drilling to occur. •Spindletop wells went from producing nearly 50,000 barrels per day to about 10,000 barrels per day in just 2 years. •By this time Spindletop had already made it’s name in history. •The Spindletop oil boom led to the creation of over 600 oil companies, including Texaco, Gulf, and Mobil. •Oil replaced lumber as the leading Texas industry and oil companies produced millions of gallons per year. •By providing a new source of inexpensive, efficient fuel, Oil changed the future for transportation and for industries. The Oil Boom after Spindletop •The oil boom of the 1920’s & 1930’s caused rapid growth in Texas and rural areas were out run with oil derricks. •In 1901 a flour milling company started using oil as a fuel source to run its machinery and soon after other mills started doing the same. •As the drilling for oil increased, boomtowns developed around the successful wells, which caused crowded noisy conditions. •Crime, diseases and a lack of safe drinking water were major concerns during this time. •Towns developed so quickly there wasn’t time for adequate development of water and sewer systems which caused dysentery, typhoid fever and other diseases. •Lack of sewage and drainage systems, along with frequent rainstorms made mud a huge problem too. The Oil Boom after Spindletop continued… •The oil discoveries created a demand for new industries and businesses. •Refineries were built near oil fields to make the oil usable for industry. Companies built pipelines to connect their refineries to distant oil fields. •The Humble Oil and Refining Company (later Exxon Mobil) built the largest refinery on the Gulf Coast. •After Spindletop the search for oil spread and wildcatter’s made discoveries all over Texas. •The Great Depression hit and oil prices dropped tremendously. Texas Railroad Commission had to regulate the amount of oil that producers could supply. •Because Texas was the world’s leading producer of oil, slight changes in production levels were felt world wide. The more oil Texas produced, the lower the prices dropped. The less oil Texas produced, the higher the prices rose. •The changes in oil prices had major effects on the automobile industry, shipping costs, travel and many other areas of life. Impact of oil •Automobiles are powered by oil and gasoline •Many of the plastic and rubber products in our homes and classrooms are made from oil-based chemicals. •In the 1920’s chemists learned how to remove chemicals from petroleum to make everyday household items, which started the petrochemical industry. •World War II - chemicals used to make explosives + synthetic rubber for tires. •Petrochemicals raised environmental concerns because the processes created large amounts of toxic waste. Step 3 Use the flow chart to answer the following questions 1. According to the title, what is the flow chart about? 2. What step follows the location for underground oil being identified? 3. What is the function of the derrick? OIL IN TEXAS Age of Oil Maps – Texas Oil Fields Chart – Population of Texas between 1880 – 1945 OIL IN TEXAS Age of Oil Maps – Texas Oil Fields Chart – Population of Texas between 1880 – 1945 POP QUIZ GET OUT A SHEET OF PAPER!!!!! POP QUIZ WARM UP-BENEFITS OF HAVING OIL Analyze the photo below. Use the T-Chart on your note sheet to compare 19th century troubles with 20th century comforts. PLACES OF IMPORTANCE IN TEXAS Political and cultural regions Dallas/Ft. Worth Metro (political) Houston Metro (political) Austin/San Antonio Corridor (political) African-Americans – East/Southeast Texas (cultural) Mexican Americans/Tejanos – South Texas (cultural) Cowboys – West Texas (cultural) TEXAS BOOMTOWNS Boomtowns – Beaumont grew from a lumber town of 9,000 to 50,000 Oil Workers, speculators, gamblers, adventurers all flocked to the oil boom towns like Beaumont Very similar to what happened 30 years earlier in the cowtowns of the Mid-West. TEXAS BOOMTOWNS Problems: 1.Major housing shortages 2.Strangers, criminals, flocked to towns to make money from oil drilling and people living there 3.Lack of oil producing restrictions caused many wells to be pumped dry 4.Overdrilling and production caused severe drop in oil prices OIL IN NORTH TEXAS Petrolia - 19 miles from Wichita Falls Electra – discovered by cattle rancher W.T. Waggoner had the first big boom in North Texas Burkburnett – well named ‘Fowler’s Folly’, “gusher” that produced thousands of barrels a day HOUSTON BENEFITS FROM OIL BOOM Houston became the center of the oil business industry; “Where 17 railroads meet the sea” Petroleum companies need: banking, insurance, transportation, and legal services 1914 – Houston Shipping Channel opened which allowed large ships and barges into the port. TEXAS LEADERS IN SCIENCE AND TECHNOLOGY Howard Hughes Sr. Howard Hughes Sr. developed a new type of drill bit -rotary drill bit. Made it possible to drill through very hard rock to reach oil deep underground. (1909 patent) QUESTIONS (1-4): 1. What were some of the uses of oil that different groups had used throughout Texas history. 2. What is “Spindletop?” 3. What happened at Spindletop on January 10, 1901 and what were the effects of this happening? 4. How did Spindletop affect economic developments in Texas and the U.S.? QUESTIONS (5-8): 5. New oil discoveries helped to create new drilling communities called ______________. 6. How would you describe life in one of these towns? 7. What major Texas city became significant to the oil industry and how did the city help to grow the oil industry in Texas and greater U.S.? 8. How was the lumber industry affected by the oil boom? TEXAS IN THE PROGRESSIVE ERA 1880-1920 GALVESTON HURRICANE OF 1900 September 8, 1900: Galveston was struck by a hurricane of unbelievable force. Impact: 1. worst natural disaster in U.S. history 2. more than 6000 killed or injured 3. aftermath brought new changes in city government, housing and protective seawall construction for residents AFTERMATH OF GALVESTON HURRICANE Engineers built a seawall around the shoreline to prevent damaging waves and water surges from destroying homes and businesses. Houses were raised on platforms or stilts as protection. Galveston adopts a new city manager form of government to handle the rebuilding (most common form of city government in Texas today) PROGRESSIVE MOVEMENT IN TEXAS Population growth in the cities brought in new problems and forced Texans to deal with existing ones. The Progressive Movement attempted to reform (solve) these problems. PROGRESSIVE MOVEMENT REFORMS Reforms included: 1. new form of city government (after Galveston hurricane), 2. the Terrell Election Law, 3. women’s suffrage, 4.
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