The 1919 “Snake Hollow Gusher” brought a natural gas drilling boom (and bust) to Pittsburgh, Pennsylvania.
“Rarely, a community sees its pulse quicken with a get-rich quick beat, feels the boom fever strike, suffers the chill of disillusion when the ‘El Dorado’ fades out and then recovers,” noted the Pittsburgh Press on July 15, 1934.
“But this is what happened at the McKeesport gas field, scene of the Pittsburgh district’s biggest boom and loudest crash,” the newspaper added. McKeesport Gas Company was among the many petroleum company casualties.
Following America’s first commercial oil discovery in Northwestern Pennsylvania in 1859, natural gas development began in Western Pennsylvania in the late 1870s. Two brothers discovered a massive natural gas field on November 3, 1878, and brought a new energy resource to Pittsburgh factories.
“By 1887, for the first time in decades, the smoky skies over Pittsburgh cleared as mills, furnaces, and factories burned natural gas instead of coals,” noted a Pennsylvania historian in 2009. Learn more about the once famous Haymaker gas well in Natural Gas is King in Pittsburgh.
For investors in 1919, the region’s gas history would seem to be repeating itself.
McKeesport Gas Company was one of about 300 petroleum companies that sprang up within six months of an August 30, 1919, discovery — a runaway natural gas well near McKeesport. The “Snake Hollow Gusher” between the Monongahela and Youghiogheny rivers, blew in at more than 60 million cubic feet of natural gas a day.
The headline-making gas well, drilled by S.J. Brendel and David Foster, prompted a frenzy that saw $35 million dollars invested during the boom’s seven-month lifespan.
McKeesport Gas Company incorporated on December 5, 1919, and two-weeks later enticed investors with advertisements in the Pittsburgh Press and the Gazette Times newspapers. “Over 500 Acres of Leases in the Heart of the McKeesport Gas Fields,” proclaimed one newspaper ad, offering stock at $1.25 a share.
Biggest Boom, Loudest Crash
“Many residents signed leases for drilling on their land,” noted a local reporter. “They bought and sold gas company stock on street corners and in barbershops transformed into brokerage houses in anticipation of fortunes to be made.”
However, of the estimated $35 million sunk into the nine square mile area of the boom, only about $3 million came out. By the beginning of 1921, natural gas production was falling in about 180 producing wells — and more than 440 wells were dry holes.
The McKeesport natural gas field was reported as, “the scene of the Pittsburgh district’s biggest boom and loudest crash.”
A circa 1920 panoramic photograph at the Library of Congress captured the drilling boom at the McKeesport, Snake Hollow, Gas Belt, by Hagerty & Griffey.
McKeesport Gas Company most likely drilled a few of the boom’s hundreds of dry holes and with funds exhausted, disappeared into petroleum history. Fifteen years later, McKeesport Mayor George H. Lysle explained to a Pittsburgh newspaper reporter how the town survived the “seven-month wonder” natural gas boom:
“Other boom towns,” he said, “were built merely on the strength of the wealth that was to pour from their wells or mines. But McKeesport and vicinity was established before the boom came. When it was over, people still had their jobs in the mills and stores, the permanent population remained, and the natural resources of the district, except for gas, were still as great as ever. We were still a great industrial community.”
Advanced in the science of petroleum geology and improved production technologies are promising far surer results than the Snake Hollow Gusher. The region’s latest gas boom — the Marcellus Shale — extends across western Pennsylvania into other Appalachian Basin states.
McKeesport Gas Company stock certificates have collectible value.
The stories of many exploration companies trying to join petroleum booms (and avoid busts) can be found in an updated series of research in Is my Old Oil Stock worth Anything?
Recommended Reading: McKeesport – Images of America: Pennsylvania (2007); Western Pennsylvania’s Oil Heritage (2008); The Extraction State, A History of Natural Gas in America (2021); Your Amazon purchase benefits the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.
The American Oil & Gas Historical Society preserves U.S. petroleum history. Become an AOGHS annual supporting member and help maintain this energy education website and expand historical research. For more information, contact firstname.lastname@example.org. Copyright © 2021 Bruce A. Wells. All rights reserved.
Citation Information: Article Title: “McKeesport Gas Company.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/stocks/mckeesport-gas-company. Last Updated: September 1, 2021. Original Published Date: April 29, 2013.