the birth of oil warm up listen to the “beverly hillbillies” theme song answer the following...
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The Birth of Oil
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Warm Up
• Listen to the “Beverly Hillbillies” Theme Song• Answer the following questions:
What were the 2 names given to oil?
Why was it called Black Gold ? Why was it called Texas Tea ?
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Search for Oil• The demand for oil had risen dramatically
after scientists had developed kerosene in the mid-1800’s.
• 19th Century – oil was found, but there was little demand for it
• Petroleum is a dark thick liquid fossil fuel• Fossil fuel is a fuel formed underground
from plant and animal remains.
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The Search for Oil
• Drake’s success led others to search for oil.
• 1866: Melrose Petroleum Oil Company drilled the first successful oil well in East Texas
• 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.
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The Search for Oil
• 1894: Oil is found in Corsicana & drilling is encouraged in East Texas.
• 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.
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Spindletop
A discovery that changed Texas forever
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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 traps oil and natural gases.
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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
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The Spindletop Strike
• After finding business leaders willing to invest in new equipment, Lucas continued drilling.
• On January 10, 1901, Lucas struck oil, Texas was changed forever
• Jan. 10, 1901 - Spindletop• 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.
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News of the gusher spread around the world.
New people and new industries came to Texas almost overnight.
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Analyze Data What was the most significant result of the discovery of oil at Spindletop? Cite Evidence What data supports your evaluation?
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Boom and Bust after Spindletop• Discovery at Spindletop led to a boom in
the Texas economy and created jobs• Oil drillers rushed to the area• Population of Beaumont swelled by
nearly 40,000• 1902- 20% of the oil produced in the
U.S. came from Spindletop• Spindletop began the first of many oil
booms in Texas• Large quantities of oil produced, the
supply outpaced the national demand; prices dropped
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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.
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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 major 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 state’s economy
• Natural gas was also produced by the oil fields
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Boom and Bust Cycles
• Agriculture was the leading industry• Expansion of urban areas created demand of agricultural products• The value of agricultural products increased• Farmers increase production by using new machines • Prices dropped because too many agricultural products flooded the market
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MAJOR OIL AND NATURAL GAS DISCOVERIES, 1900–1940
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Wildcatters and New Oil Fields
• The Spindletop strike lured thousands to Beaumont.
• Some of these companies were owned by wildcatters
• Wildcatters: independent oil operators who searched for new fields.
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Wildcatters and New Oil Fields
• These entrepreneurs saved and borrowed money to invest in the oil business.
• Wildcatters competed with each other to find salt domes in the Gulf Coast Plains.
• Oil was found at Sour Lake, 20 miles outside of Beaumont.
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Wildcatters and New Oil Fields
• Overdrilling led to a drop in underground pressure, making further oil drilling difficult.
• By the end of 1903, more than half of the wells at Sour Lake were abandoned
• Oil production extend beyond the Gulf Coast to North Texas.
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Wildcatters and New Oil Fields• After success was found in North Texas,
oil companies began drilling in the Texas Panhandle. Oil was found in 1921.
• Oil was also discovered in the Permian Basin region of West Texas also in 1921.
• An oil strike in East Texas gave the oil industry its biggest surprise.
• Geologists had claimed that there was little oil in East Texas north of the Gulf Coast.
• 1920s: New oil fields were found in East & West Texas
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Oil Business is Big Business
• As more oil and gas fields were discovered, the Texas oil industry grew into a big business.
• Some Texas oil companies began to use a business strategy called vertical integration – owning the businesses involved in each step of the manufacturing process
• Oil companies might expand into drilling production and refining..
• They also bought items needed for business such as barges and railroad tanker cars.
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Oil Business is Big Business
• Most oil companies also practiced horizontal integration- owning many businesses in a particular field.
• The larger oil companies would own refineries, sharing supplies and resources to make their businesses run more efficient.
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Equipment of Oil Drilling
•Derricks are the towers that support drilling equipment.
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Oil Well well or shaft drilled through rock, from which petroleum is drawn.
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Once you get it out of the ground, then what?
Storage
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Then ya gots ta’ MOVE IT!Transportation!
Now, move it where?
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Where is crude oil turned into gasoline?
• A refinery is a factory where crud oil from the ground is refined and made into products.
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Off Shore Drilling
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Pipeline
A long pipe, typically underground, for moving oil, gas, etc., over long distances.