Americans were the first people to become mass producers and consumers of oil. Texas Oil came gushing at the dawn of the 20th century. Initially driving the state’s economy, agriculture was quickly replaced by oil. The Texas oil was not a new thin as explorers had earlier speculated. The first notable discovery was in 1894 at Navarro County. Although Navarro was situated in the midfield continent, it could give 2.5 barrels of oil daily. This dry well situation improved with the digging of wells, producing 69,975 barrels per day from 47 wells (Ewing, Waston, McInturff & Liang, 2014). The discovery that made Texas one of the top oil producers was Spindle top discovered in 1901. The discovery of Spindletop resulted in growth within the oil industry. Within a year, 1500 chartered companies mushroomed within Texas, leading to oil becoming the dominant fuel and an integral part of the U.S. economy. (Shattuck & Slaughter, 2019). This discovery triggered speculations that led to much more oil reservoirs in Texas. The Spindletop was the first salt dome oil discovery.

After the discovery in 1901, more oil reservoirs were discovered in Dallas. In 1909, oil production within the U.S. preceded the production of the rest of the world combined. In 1923, oil was discovered in Powell oil fields, unleashing an even larger deposit that attracted thousands. With the earlier invention of the airplanes in the 1900s, oil sales and their discoveries shot up. The oil industry had a market for the product that had been initially useless. In 1972, the United States held the record of being the most motorized country in the world. This was made possible by Henry Ford’s model of the invention of mobile coupled with the availability of oil in abundance (Shattuck & Slaughter, 2019). Corsicana emerged as the most competitive and highest-producing oil region in Texas. In 1953, it was reported that 21 millionaires lived within the city. In 1956, 500 more wells were discovered in the town. Early oil discoveries such as Spindletop targeted permeable sand abutting and salt domes. The much later oil discoveries focus much more on the source rocks.

Impact of Oil in Texas

When looked at in the aspect of corporate, development, and personal wealth, oil drastically affected the quality of life of landowners where oil was discovered. This included people involved in extracting, exploring, and processing crude oil. In other words, the discovery of oil in the fields of Texas started companies that, over time, amassed a lot of wealth.

At the start, the once flourishing towns were put to bed when oil was discovered. In Northern Texas, the boom effect was at play. Oil discovery brought about a population explosion. The infrastructure available could not sustain the number of people, leading to scanty living in shacks, tents, and vehicles. The positive effects of having oil came on gradually. Some of the immediate impacts of the boom in oil production included building a massive courthouse in 1905 and the foundation of the Corsicana Chamber of Commerce in 1917.

The discovery of oil encouraged the use of fuel for transportation instead of steam and coal, which were initially used. With the easing of the transport system, roads began to be paved and constructed, thus increasing automobile transport. Oil discovery also leads to the mechanization of agriculture, leading to increased food production and a decrease in labor. In the first year of collecting taxes from oil-related ventures, the state’s income swelled, and the trend has been upward since.

Oil in Texas has benefited University students and public schools by establishing public school funds from land sales. Philanthropic givers have arisen from the oil production industry. In 1958, the Meadows Foundation was formed. Its primary task was to donate funds to various programs, including public health, education, arts, social services, and historic preservation. Among well-known foundations include the Richardson’s foundation founded in 1947 by Sir. Sid Richardson, an independent oil producer in Fort Worth. Millionaires out of oil production supported fine arts and literature.

The population of Texas heavily leaned on the rural population before the inception of Spindletop. In the 1940, it was reported that there was almost a strike of balance with 55% comprising of the rural population while 45% comprising the urban population. In the 1980s, 80% of Texas people lived in custom-made urban dwellings.

Oil and Economy of Texas

According to Lee (2015), Texas oil has yielded positive results on income and employment. Texas was sparsely populated two decades ago, but that is not the case today. Oil and Natural gas are to be given credit and are thus important and responsible for the Texas economy’s diversity. The discovery of oil in Spindletop has shaped and re-shaped the economy of Texas for over a century.  Oil discovery propelled the expansion of young industries.

Oil production in Texas declined significantly from the 1970s to the early 2000s. However, in the recent past, it has undergone a renaissance. In 2005, Texas was reported to produce an average of 5 million barrels of oil and 1.5 cubic feet per day.

References

Ewing, B. T., Waston, M. C., McInturff, T., & Liang, D. (2014). Current and future economic impacts of the Texas oil and gas pipeline industry. Lubbock, TX: Texas Tech University.

Lee, J. (2015). The regional economic impact of oil and gas extraction in Texas. Energy Policy, 87, 60-71.

Shattuck, T. & Slaughter, A. (2019). Back To The Future: How Oil & Gas Continues To Shape Texas & The U.S. SHALE Magazine. Retrieved November 24, from https://shalemag.com/back-to-the-future-how-oil-and-gas-continues-to-shape-texas-and-the-united-states/