The oil boom of the late 19th/early 20th century led to the rapid growth of boomtowns as thousands of people moved to new oil fields. This dramatically increased the populations of places like Beaumont and Sour Lake. The automobile industry grew successful using gasoline from oil in internal combustion engines. Petrochemical industries also emerged producing rubber, plastics, and carbon black from oil. Texas passed laws regulating the oil industry and collecting taxes on oil to support education. The permanent university fund was established using land designated for education, supported by oil royalties and philanthropy which continues to benefit the University of Texas and Texas A&M systems.

1. Chapter 23: The Oil Boom Section 3: Effects of the Oil Boom

2. Boomtowns Oil drew thousands of people to oil fields and nearby towns Beaumont: 9,000  50,000 Sour Lake: village  10,000 Boomtowns crowded, dirty, and rough

3. The Automobile & Petrochemical Industries The technological development that most assured the success of the oil industry was the automobile, with its internal combustion engine These engines used gasoline

4. The Automobile & Petrochemical Industries Petrochemical products: Synthetic rubber Plastics Carbon black (used in tires, ink)

5. The Effects of the Oil Boom 1899: Texas legislature began to try to protect groundwater from oil pollution Legislature made it illegal to waste oil and natural gas

6. The Effects of the Oil Boom 1917: State gave the Texas Railroad Commission authority to regulate the oil business

7. The Effects of the Oil Boom 1905: State begins collecting taxes on oil 1876: Legislature set aside 1 million acres in West Texas for the Permanent University Fund

8. The Effects of the Oil Boom Santa Rita No. 1 —oil well that struck oil and helped establish the Permanent University Fund Pictures of Santa Rita No. 1

9. The Effects of the Oil Boom The Texas A&M University System & University of Texas System use money from the Permanent University Fund

10. The Effects of the Oil Boom Education in Texas has benefited from the oil industry: Taxes on oil Permanent University Fund Philanthropy

11. The Effects of the Oil Boom Philanthropy —giving money or gifts for charitable causes Philanthropists give money to education, hospitals, & the arts Oil industry created jobs and spurred industry