Products of OilNatural Gas – a gas that can be used for fuelNatural gas production in the world
Petroleum – Commonly calledoil, petroleum is a dark, thick, liquidfossil fuelFossil Fuel – formed underground fromplant or animal remains
Refinery - A factory where crude oil is refined, or made pure, and thenmade into various products like kerosene for lamps!(I used to call Pasadena Stinkadena because the whole town smelled so bad!!)
Derricks – towers that support oil-drilling equipment
Boomtowns• Beaumont and Sour Lake are boomtownsbecause they grew along with economicbooms.
Wildcatters• Independent oil operators whosearch for new fields. Inparticular Wildcatterscompeted with one another tofind salt domes in the GulfCoast Plain just like theSpindletop strike.Glenn Herbert McCarthy“King of the Wildcatters”
Howard Hughes Sr.• Howard Hughes Sr. got thedouble drill bit patentedand it revolutionized theoil industry.• With this new technologychanged the oil industry byallowing drilling where itwas previouslyimpossible!!!
Pattillo Higgins• Dug for oil under asalt dome at a placecalled Spindletop Hill• After many failures,they hired an engineernamed Anthony Lucasand he eventuallystruck oil.
The famous Lucas Gusher, 1901Spindletops Boiler Avenue, 1903It is known as the Spindletop Strike and itmarked the beginning of the Texas Oil Boom
The Effects of the BOOM• In 1917 the legislature gave the Texas RailroadCommission, an agency originally created toregulate railroads, authority to enforce lawsconcerning the petroleum industry.
Most Texans thought theland set aside for educationwas a waste until the SantaRita No. 1 struck oil in 1923!!
Changes in GovernmentOne of the most significantdevelopments in Texangovernment resulted from thecreation of a state oilproduction tax in 1905. Therevenue generated by the taxmade funds available fordevelopment in the statewithout the need for incometaxes and similar revenuemechanisms adopted in otherstates.
Economic Changes• At the start of the 20th century, agriculture, timber, andranching were the leading economic engines of Texas.This was changed by the boom, which led to rapidindustrialization.• By 1940, the value of petroleum and natural gasproduced in Texas exceeded the value of all agriculturalproducts in the state.From:To:
What issues does the oil industryface today? (Watch this video!)• http://video.foxnews.com/v/1537892441001/tax-break-debate-for-oil-companies/