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Coal Oil Johnny

John Washington Steele of Venango County, Pennsylvania

The lucky life of John Washington Steele started on December 10, 1844, when Culbertson and Sarah McClintock adopted him as an infant.

Johnny Steele – who one day will become famous as “Coal Oil Johnny” – was adopted along with his sister, Permelia.

The McClintocks brought them home to their farm on the banks of Oil Creek in Venango County, Pennsylvania.

Fifteen years later, the petroleum boom prompted by Edwin Drake’s 1859 discovery at nearby Titusville – America’s first commercial oil well – made the widow McClintock a fortune in royalties.

When Mrs. McClintock died in a kitchen fire in 1864, she left the money to her only surviving child, Johnny. At age 20, he inherited $24,500.

Johnny also inherited his mother’s 200-acre farm along Oil Creek between what is now Rynd Farm and Rouseville. The farm already included 20 producing oil wells yielding $2,800 in royalties every day.

“Coal Oil Johnny” Steele will earn his name in 1865 after such a legendary year of extravagance that years later the New York Times reported.

“In his day, Steele was the greatest spender the world had ever known,” the newspaper proclaimed. “He threw away $3,000,000 in less than a year.”

Philadelphia journalists coined the name “Coal Oil Johnny” for him, reportedly because of  his attachment to a custom carriage that had black oil derricks spouting dollar symbols painted on its red doors. He later confessed in his autobiography:

I spent my money foolishly, recklessly, wickedly, gave it away without excuse; threw dollars to street urchins to see them scramble; tipped waiters with five and ten dollar bills; was intoxicated most of the time, and kept the crowd surrounding me usually in the same condition.‎

Coal Oil Johnny

“Coal Oil Johnny” owned a carriage with black oil derricks spouting dollar symbols painted on its red doors. Illustration from October 8, 2010, article in the Atlantic magazine.

Of course, such wealth could not last forever. The rise and fall of Coal Oil Johnny, who died in modest circumstances in 1920 at age 76, will linger in petroleum history.

In 2010, the Atlantic magazine published “The Legend of Coal Oil Johnny, America’s Great Forgotten Parable,” an article surprisingly sympathetic to his riches to rags story.

“Before J.R. Ewing, or the Beverly Hillbillies, or even John D. Rockefeller, there was Coal Oil Johnny,” noted the October 8 feature story.

“He was the first great cautionary tale of the oil age – and his name would resound in popular culture for more than half a century after he made and lost his fortune in the 1860s.”

Coal Oil Johnny

The refurbished boyhood home of “Coal Oil Johnny” today stands near Oil Creek State Park’s historic (and operating) train station north of Rouseville, Pennsylvania.

For generations after the peak of his career, Johnny was still so famous that any major oil strike – especially the January 1901 gusher at Spindletop Hill in Beaumont, Texas, “brought his tales back to people’s lips,” noted magazine article, citing Brian Black, a historian at Pennsylvania State University.

It was wealth from nowhere,” Black explained. “Somebody like that was coming in without any opportunity or wealth and suddenly has a transforming moment. That’s the magic and it transfers right through to the Beverly Hillbillies and the rest of the mythology.”

“Coal Oil Johnny” was a legend and like all legends, “he became a stand-in for a constellation of people, things, ideas, feelings and morals – in this case, about oil wealth and how it works,” added the article.

“He made and lost this huge fortune – and yet he didn’t go crazy or do anything terrible. Instead, he ended up living a regular, content life, mostly as a railroad agent in Nebraska,” the 2010 Atlantic article concluded.

“Surely there’s a lesson in that for the millions who’ve lost everything in the housing boom and bust.”

Coal Oil Johnny

John Washington Steele died in Nebraska in 1920.

John Washington Steele’s Venango County home, relocated and restored by Pennsylvania’s Oil Region Alliance of Business, Industry & Tourism, stands today in Oil Creek State Park, just off Route 8, north of Rouseville.

On Route 8 south of Rouseville is the still-producing  McClintock No. 1 oil well.

“This is the oldest well in the world that is still producing oil at its original depth,” proclaims the Alliance. “Souvenir bottles of crude oil from McClintock Well Number One are available at the Drake Well Museum, outside Titusville.”

Published in 1902, Coal Oil Johnny: story of his career as told by himself (John Washington Steele) was digitized in 2007 and now is a free Google Ebook.

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Listen online to “Remember When Wednesdays” on the weekday morning radio program Exploring Energy, 9 a.m to 10 a.m. (Eastern Time). Bruce Wells calls in on the last Wednesday of every month. Please support the American Oil & Gas Historical Society today with a tax-deductible donation. © This Week in Petroleum History, AOGHS 2016.

 

Call them oilfield detectives, night riders of the hemlocks, or simply oil scouts. These early oil and gas well investigators separated fact from fiction.

oil scouts

Oil scouts like Justus McMullen often braved harsh winters (and sometimes armed guards) to visit well sites. Their intelligence debunked rumors and “demystified” reports about oil wells producing in early oil fields.

In the hard winter of 1888, famed 37-year-old oil scout Justus C. McMullen, succumbs to pneumonia – contracted while scouting production data from the Pittsburgh Manufacturers’ Gas Company’s well at Cannonsburg.

McMullen, publisher of the Bradford, Pennsylvania, “Petroleum Age” newspaper, already had contributed much to America’s early petroleum industry as a reliable oil field detective. Read the rest of this entry »

 

Oil Exchanges

The Oil City, Pennsylvania, Oil Exchange incorporated in 1874. In 1877, it was the third largest financial exchange of any kind in America, behind New York and San Francisco.

In a sign of the growing  power of John D. Rockefeller, Standard Oil Company brings an end to Pennsylvania’s highly speculative oil trading markets.

On January 23, 1895, the Standard Oil purchasing agency in Oil City notifies independent oil producers it will only buy their oil at a price “as high as the markets of the world will justify” – and not necessarily “the price bid on the oil exchange for certificate oil.” Read the rest of this entry »

 

first oil well fire

Edwin L. Drake, right, stands with friend Peter Wilson of Titusville, Pennsylvania, at the drilling site – but not the original derrick – of America’s first commercial oil well of 1859. From the Drake Well Museum collection.

Along Oil Creek, near Titusville, Pennsylvania, the wooden derrick and engine house of the first U.S. commercial oil well erupted in flames in 1859, perhaps America’s first oil well fire.

This historic well, which caught fire on October 7, was completed at 69.5 feet deep the previous August 27 by a determined “Colonel” Edwin L. Drake.

To increase efficiency, Drake had invented (but did not patent) a “drive pipe.” He and his driller, William “Uncle Billy” Smith, used steam-powered cable-tool technology, an advancement from the ancient spring-pole.

Maligned by many as “Drake’s Folly,” the discovery well’s initial oil production came from a hand-operated water pump borrowed from a local kitchen.

Drake – who had received his military title in letters addressed to him by his employers, the Seneca Oil Company of New Haven, Connecticut – will become known as the father of the American petroleum industry. Titusville and Oil City today annually celebrate his 1859, find. Visitors to the Drake Well Museum in Titusville can tour a reconstructed cable-tool derrick at its original location along Oil Creek. Read the rest of this entry »