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In this unit you will learn about the urbanization of Texas after the discovery of oil, "Boom & Bust" Cycles and the laws of supply & demand, the Galveston Hurricane of 1900, and Texas' changing interaction with the environment.
In this unit you will learn about the urbanization of Texas after the discovery of oil, "Boom & Bust" Cycles and the laws of supply & demand, the Galveston Hurricane of 1900, and Texas' changing interaction with the environment.
Can adopting new ideas and innovations have unintended consequences?
The Dangers of Striking Oil
The Dangers of Striking Oil
The discovery of oil in Texas brought a flood of people and money, but those changes also came with costs. Hastily constructed oil storage facilities often leaked, polluting the land and waterways nearby. Workers were injured or even killed while working.
In this clip from the movie, “There Will Be Blood” oil rig workers put themselves on in danger while trying to strike oil deep underground. Nevertheless, no matter how deadly conditions became Texans would continue to look for the rare “black gold” in the hopes of getting-rich-quick.
The Age of Oil
Background
While oil has been known and used in Texas for hundreds of years, in ways very different from how we use oil today.
Native Americans gathered the oil found in seeps around the Gulf Coast for medicinal purposes, and Spanish explorers used oil found on Texas beaches to waterproof their boats.
However, oil wasn’t seen as a profitable business opportunity until people learned in the late 1850s that petroleum could replace whale oil for lighting.
Demand for oil increased as it became an ingredient in many medicines and new inventions.
Savvy businessmen realized that a lot of money could be made if they could find oil under the ground.
Characteristics Of The Age Of Oil
Characteristics Of The Age Of Oil
Time Period
Time Period
1901-1940's
1901-1940's
Population
Population
The creation of the oil industry in Texas would lead to a population BOOM as people rushed to the oil fields for jobs.
The creation of the oil industry in Texas would lead to a population BOOM as people rushed to the oil fields for jobs.
Economy
Economy
The growth of urban areas, such as Dallas and Houston, would lead to the growth of service-related jobs. These are jobs that involve any type of service-exchange in the economy.
Examples of service-related jobs include housekeeping, tours, nursing, restaurant workers, teaching and many more.
The Galveston Hurricane of 1900
The Hurricane Strikes Galveston
The city of Galveston is located on one of Texas’s barrier islands. Ships carrying Texas goods used the port and harbor at Galveston to move supplies into and out of Texas.
Because of its location on the gulf, hurricanes threatened the city. A hurricane is a fierce tropical storm with winds of at least 74 miles per hour.
On September 8, 1900, a very strong hurricane hit the coast. It was the worst natural disaster in the history of the country. Winds reached 120 miles per hour. Rain was heavy. Water flooded the city. Between 6,000 and 8,000 people died in the storm. Thousands more were left homeless as the hurricane destroyed half of Galveston.
After the Storm
After the Storm
To protect the city from future hurricanes, a seawall was built around Galveston and all the buildings behind it were raised [some, as much as 10 feet higher]. Rebuilding the city took huge amounts of time and money.
During this time, other cities [such as Houston] grew in size and importance as many businesses moved inland to avoid being destroyed by hurricanes in the future.
This move inland would greatly affect the Economic Development of Texas in the years to come.
Efforts to quickly rebuild Galveston led to the creation of a new form of city government known as a “City Commission”. In this type of government, public officials [called commissioners] work together to manage the city’s issues.
Oil BOOM!
Oil Boom!
Oil Boom!
Oil, also known as Petroleum – an oily liquid found in the earth – can be used to make gasoline and kerosene. In the 1800s, people used kerosene for lighting. Gasoline first became important in the late 1800s, when the growing automobile industry led to increased demand.
The first large oil field in Texas was the Corsicana oil field. It was in Navarro County. This field began producing oil in the 1890s.
In 1901, drillers struck an oil “gusher” in a hill near Beaumont called Spindletop Hill. This area began to produce more oil than all the other wells in the entire country put together. This discovery began an oil boom. The city of Beaumont became a “boomtown” – growing very rapidly.
Howard Hughes Sr.
Howard Hughes Sr.
Technological innovation helped to expand the oil industry in Texas
Howard Hughes Sr., owner of Hughes Tool Company, made a huge contribution to the Texas Petroleum (Oil) Industry when he created the "Sharp -Hughes" a special rotary tri-cone rock drill bit that was used in the Texas Oil Boom.
"Boom & Bust Cycle" and Supply & Demand
"Boom & Bust Cycle" and Supply & Demand
A “Boom & Bust Cycle” is a series of events in which a rapid increase in business activity in the economy is followed by a rapid decrease in business activity, and this process is repeated again and again.
In other words, this cycle means that there is a time period of great profits (money) in an industry (like cotton) followed by a decreasing (downward) trend in that industry.
Supply refers to the amount of goods (things) that are available. Demand refers to how many people want those goods.
When Supply of a product goes up, the price of a product goes down and Demand for the product can rise because it costs loss (Wouldn’t you rather buy something when it’s cheap?).
As a result, prices will rise.
Boom & Bust/Supply & Demand Example
Boom & Bust/Supply & Demand Example
In the 1930’s-1940’s in Texas Cotton experienced Overproduction (too much of it was made) so the prices went WAAAYY DOWN.
As a result, less land (acres) were used to plant Cotton.
Oil Changes the Economy
Oil Changes the Economy
Oil became a major industry in Texas. Houston was a center of this oil industry.
Oil brought many benefits to the state. The sale and leasing of oil fields helped fund education. Taxes on oil sales help pay for other government services as well.
The state government passed some laws to regulate the oil industry after it was linked to pollution.
The Texas Railroad Commission (TRC) was expanded to regulate prices within the oil industry.
Urban Growth
Dallas Dominates Central TX
Dallas Dominates Central TX
WOOOO!!!! DALLAS!!!!! THE BEST CITY IN THE WORLD!!!
By 1900, Dallas had emerged as the major city in central Texas.
Because of Texas’ excellent railroad system, urban centers such as Dallas & Houston became important cities for businesses, manufacturing, banking, insurance, and legal services by the early twentieth century (1900’s).
The population of Dallas grew rapidly. The city population doubled in size from 1900 to 1910.
Killers of the Flower Moon:
The Price of Oil
After striking oil on their reservation in the early 1900s, the Osage Native Americans soon became very wealthy. However, as White settlers moved on to their land, trying to take the money for themselves, a string of murders came about. It’s estimated that from 1910 to 1930 hundreds of Osage tribal members were murdered or died under suspicious circumstances in an organized effort to rob them of their oil money.
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