Unit 09: Modernizing Texas in An Age of Oil 1900-1929 Unit 9 Vocabulary • boom and bust cycle – an economic pattern characterized by periods of economic growth and periods of economic decline • industrialization – the economic development of manufacturing products from natural resources • petroleum – a thick, oily substance found deep in the Earth, use as a fuel • prohibition – to ban something, generally refers to the movement to ban the manufacture, sale, transportation and use of alcoholic beverages • progressives – those who advocate social reforms and legislative programs to improve society • suffrage – the right to vote • rural – Country, or country life • urban – City, or city life The Oil Boom © Tara Fountain **Question What is oil: and how is it created? Click Here to find out!!!! 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? On your note sheet, choose Which products are created from oil ALL of them are created by using oil!!! 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. ** QUESTIONS!!! 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 **QUESTION!! Analyze the photo below. Use the T-Chart on your note sheet to compare 19th century troubles with 20th century comforts. 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) World War I Political Impact • Approximately 200,000 Texans fought • Edward M. House was the closest advisor to President Wilson • Four major military camps were set up in Texas – Camp Bowie in Ft. Worth, Camp Travis in San Antonio, Camp Logan in Houston, and Camp MacArthur in Waco Economic Impact • Raised money by buying Liberty Bonds • Sold to Citizens to help fund the war effort. • function of the bonds is to remove money from circulation and help to control inflation • Women joined the workforce • Push for women’s rights as a result • Some foods were rationed • Rationing – Using smaller portions to conserve. Social Impact • Approximately 500 women from Texas served as nurses • Approximately 5000 Texans gave their lives • Sacrificed on the home front • Rationed • Volunteered for Red Cross Progressive Movement in Texas 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 •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. prohibition, 5. evangelical and other social services organizations Terrell Election Law • Terrell Election Law was passed in 1903 and remains the basic voting law in Texas today. This Law ensured: 1. elections would be carried out fairly 2. secret ballot voting 3. restricted campaigning near voting booths 4. primary elections held before the last general election Women’s Rights • Women were still working to reform election laws and gain voting rights. • 1918 - Governor William P. Hobby granted Texas women voting rights in Texas primary elections. • 1920 – 19th Amendment passed gave women constitutional voting rights in elections. Prohibition • Progressive reformers used the Temperance movement and targeted the sale of alcoholic beverages as the center of social ills (no-good). • They argued that saloons were associated with illegal activities like gambling, theft, and left many families in poverty. • 1918 -Texas approved a statewide prohibition law. • 1920 – 18th Amendment to the U.S. Constitution made prohibition the law of the land. Populism in Texas THE FARMERS’ ALLIANCE – Populism in Texas Populism in Texas • Populism – nationwide movement of rural citizens who had not benefited from the modern lifestyle made by the growth in industry • Goal in Texas – wanted the government of the people to protect the interests of common workers Farmer’s Alliance • Farmer’s Alliance (farmers, ranchers, and farm laborers) spread throughout South Texas forming a political party in 1892 known as the People’s Party or Populist Party • Demanded government regulation of businesses; public ownership of the railroads, telephone, and telegraph lines; and elimination of the national banking system • Called for labor reform, a graduated income tax, and the direct election of U.S.