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

: Name 3 ways we use

oil each day?

How do we use it?

Step 1 On your note sheet, choose Which products are created from oil

BENEFITS OF HAVING OILAnalyze the photo below. Use the T-Chart on your note sheet to compare 19th century troubles with 20th century comforts.

cloze Notes

Step 2

Fill in the blank on the note sheet as we read through

the power point

The Oil Industry in Texas

•Railroads began using oil for fuel in the 1880’s, which increased the demand for the fossil fuel.

•The discovery at Spindletop began the first of many oil booms in Texas.

•On January 10, 1901, Anthony Lucas hit the largest oil reserve the world had ever seen at Spindletop.

•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.

•Seven years later Melrose Petroleum Oil Company drilled Texas’s first successful oil well in Nacogdoches but it wasn’t a long term success.

•Pennsylvania was the first state to produce American Oil in 1859

Effects of the spindletop discovery

•The large number of wells at Spindletop caused over-drilling to occur.

•By providing a new source of inexpensive, efficient fuel, Oil changed the future for transportation and for industries.

•Oil replaced lumber as the leading Texas industry and oil companies produced millions of gallons per year.

•The Spindletop oil boom led to the creation of over 600 oil companies, including Texaco, Gulf, and Mobil.

•By this time Spindletop had already made it’s name in history.

•Spindletop wells went from producing nearly 50,000 barrels per day to about 10,000 barrels per day in just 2 years.

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.

•Lack of sewage and drainage systems, along with frequent rainstorms made mud a huge problem too.

•Towns developed so quickly there wasn’t time for adequate development of water and sewer systems which caused dysentery, typhoid fever and other diseases.

•Crime, diseases and a lack of safe drinking water were major concerns during this time.

•As the drilling for oil increased, boomtowns developed around the successful wells, which caused crowded noisy conditions.

•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.

Impact of oil•Trucks, cars, and buses people use everyday are powered by oil products such as gasoline and diesel.

•Since the discovery at Spindletop, oil has had a major impact in Texas and throughout the world.

•Oil impacted Texas Education as well. Money from the sale or lease of oil fields helped fund universities in Texas.

•Petrochemicals provided important benefits throughout the world but their production raised environmental concerns because the processes used to separate the chemicals from oil created large amounts of toxic waste.

•During World War II chemicals were used to make explosives and synthetic rubber for tires.

•In the 1920’s chemists learned how to remove chemicals from petroleum to make everyday household items, which started the petrochemical industry.

•Many of the plastic and rubber products in our homes and classrooms are made from oil-based chemicals.

The Oil Boom after Spindletop continued…•The oil discoveries created a demand for new industries and businesses.

•The changes in oil prices had major effects on the automobile industry, shipping costs, travel and many other areas of life.

•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 Great Depression hit and oil prices dropped tremendously. Texas Railroad Commission had to regulate the amount of oil that producers could supply.

•After Spindletop the search for oil spread and wildcatter’s made discoveries all over Texas.

•The Humble Oil and Refining Company (later Exxon Mobil) built the largest refinery on the Gulf Coast.

•Refineries were built near oil fields to make the oil usable for industry. Companies built pipelines to connect their refineries to distant oil fields.

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?

Step 3