Spindletop

• The Birth of the Oil Industry - Positives

  Texas produced 20% of all oil in the U.S. during this time. 
• The Birth of the Oil Industry - Positives

  Beaumont saw a large increase in population. 
• The Birth of the Oil Industry - Positives

  Increased businesses in town.
• The Birth of the Oil Industry - Negatives


  Supply quickly outgrew demand. 
• The Birth of the Oil Industry - Negatives

  Oil prices plummeted.
• The Birth of the Oil Industry - Why Oil?

  • Oil has many uses, including kerosene (light)
• The Birth of the Oil Industry - Why Oil?

  • Demand was high
• The Birth of the Oil Industry - Why Oil?

  • Texas wasn’t producing as much as the US, meaning its price would be higher if found
• Why is Spindletop important?

  1st Major oil strike in Texas
• Where did it happen?

  Outside of Beaumont
• Who struck oil?


  Anthony Lucas struck Oil
• When?


  January 10, 1901
• What started?


  The beginning of Texas oil BOOM!
• What was formed?


  100s of oil companies formed
• Spindletop provided what percent of US oil in 1902?


  20% of US oil came from Spindletop in 1902
• What happened to the population?

  Population BOOM!
• What was created?


  New Buisnesses
• What happened with the oil production?

  Oil outplaced demand - BUST
• -Excess oil (Surplus) =

  Low Oil Prices
• -Higher prices =

  more investments in the oil industry 
• more oil is being produced than

  the demand
• -Prices Collapse =

  Oil Companies begin investing less
• Oil Prices Rise


  BOOM
• Oil prices drop


  BUST
• • Beaumont’s population grew from 9,000 people to


  50,000 in three months.