by Bruce Wells | Jul 15, 2024 | This Week in Petroleum History
July 16, 1907 – Drilling Pioneer patents Casing Shoe –
After drilling wells in Kern River oilfields, R. Carlton “Carl” Baker (1872-1957) of Coalinga, California, patented the Baker well-casing shoe. His cable-tool innovation at the bottom of the casing string increased efficiency and reliability for ensuring oil flowed through a well.
Reuben Carlton “Carl” Baker standing next to Baker Casing Shoes in 1914. Photo courtesy the now closed R.C. Baker Memorial Museum.
Baker, who in 1903 founded the Coalinga Oil Company, by 1913 had established the Baker Casing Shoe Company (renamed Baker Tools two years later). The inventor opened his first manufacturing plant in Coalinga before moving headquarters to Los Angeles in the 1930s. The company became Baker International in 1976 and Baker Hughes after a 1987 merger with Hughes Tool Company.
Learn more in Carl Baker and Howard Hughes.
July 16, 1926 – Oil Discovery launches Greater Seminole Area Boom
Three years after an oil well was completed near Bowlegs, Oklahoma, a gusher south of Seminole revealed the true oil potential of Seminole County. The Fixico No. 1 well penetrated the prolific Wilcox Sands formation at a depth of 4,073 feet.
“Oil workers working on lowered traveling block” at well in Seminole oilfield, August 1939. Photo by Russell Lee (1903-1986) courtesy Library of Congress.
Drilled by R.F. Garland and his Independent Oil Company, the well was among more than 50 Greater Seminole Area oil reservoirs discovered; six were giants that produced more than one million barrels of oil each. With the Oklahoma City oilfield added in 1928, Oklahoma became the largest supplier of oil in the world by 1935.
Learn more in Seminole Oil Boom.
July 16, 1935 – Oklahoma Publisher produces First Parking Meter
As the booming Oklahoma City oilfield added to the congestion of cars downtown, the world’s first parking meter was installed at the corner of First Street and Robinson Avenue. Carl C. Magee, publisher of the Oklahoma News, designed the Park-O-Meter No. 1, today preserved by the Oklahoma Historical Society.
Oklahoma college students helped Carl Magee design the Park-O-Meter No. 1. Photo courtesy Oklahoma Historical Society.
“The meter charged five cents for one hour of parking, and naturally citizens hated it, viewing it as a tax for owning a car,” noted historian Josh Miller in 2012. “But retailers loved the meter, as it encouraged a quick turnover of customers.”
Park-O-Meters were manufactured by MacNick Company of Tulsa, maker of timing devices used to explode nitroglycerin in wells — and oilfield competitor of the Zero Hour Bomb Company (see Zebco Reel Oilfield History).
July 16, 1969 – Kerosene fuels launch of Saturn V Moon Rocket
A 19th-century petroleum product made America’s 1969 moon landing possible. Kerosene powered the first-stage rocket engines of the Saturn V when it launched the Apollo 11 mission on July 16. Four days later, astronaut Neil Armstrong announced, “Houston, Tranquility Base here. The Eagle has landed.”
Powered by five first-stage engines fueled by “rocket grade” kerosene, the Saturn V was the tallest, heaviest and most powerful rocket ever built until the SpaceX Starship. Photos courtesy NASA.
Five engines of the Saturn V’s first stage burned “Rocket Grade Kerosene Propellant” at 2,230 gallons per second — generating almost eight million pounds of thrust. The fuel was a highly refined kerosene RP-1 (Rocket Propellant-1) that began as “coal oil” for lamps.
When Canadian Abraham Gesner (1797-1864) first refined the lamp fuel from coal in 1846, he coined the term kerosene from the Greek word keros (wax), but many people called it “coal oil.” A highly refined version of his product now fuels rockets, including the SpaceX Falcon 9.
Learn more in Kerosene Rocket Fuel.
July 18, 1929 – Darst Creek Oilfield discovered in West Texas
With initial production of 1,000 barrels of oil a day, the Texas Company No. 1 Dallas Wilson well revealed a new West Texas oilfield at Darst Creek in Guadalupe County, about five miles from the southwestern edge of the Luling oilfield. The field would be developed by Humble Oil and Refining (later Exxon), Gulf Production Company, Magnolia Petroleum (later Mobil), as well as the Texas Company (later Texaco).
The Petroleum Museum of Midland, Texas, in 2019 erected a circa 1930 derrick used in the Darst Creek oilfield. Photo courtesy the Petroleum Museum.
By December 1931, the Darst Creek field produced more than 19.7 million barrels of oil from an average depth of 2,650 feet, according to a Humble Oil geologist, who noted that of the 291 wells drilled, just 19 were dry holes. The West Texas field also was among the first to operate under proration.
“To avoid the risks of unregulated production with a resulting loss of reservoir pressure, water encroachment and cheap crude prices, the operators agreed to voluntary proration in the field,” noted a Petroleum Museum newsletter, adding that “voluntary proration proved to be difficult to maintain.”
July 19, 1915 – Petroleum powers Washers and Mowers
Howard Snyder applied to patent his internal combustion-powered washing machine, assigning the rights to the Maytag Company. His washer for “the ordinary farmer” who lacked access to electricity used a one-cylinder, two-cycle engine that could operate using gasoline, kerosene, or alcohol.
Advertisements featured two popular consumer products powered by air-cooled internal combustion engines.
Four years later, Edwin George of Detroit removed the engine from his wife’s Maytag washing machine and added it to a reel-type lawnmower. His invention launched the Moto-Mower Company, which sold America’s first commercially successful gasoline-powered lawn mower.
July 19, 1957 – Oilfield discovered in Alaska Territory
Although some oil production had occurred earlier in the territory, Alaska’s first commercial oilfield was discovered by Richfield Oil Company, which completed its Swanson River Unit No. 1 in Cook Inlet Basin. The well yielded 900 barrels of oil per day from a depth of 11,215 feet.
Even the Anchorage Daily Times could not predict oil production would account for more than 90 percent of Alaska’s revenue.
Alaska’s first governor, William Egan, proclaimed the oilfield discovery provided “the economic justification for statehood for Alaska” in 1959. Richfield leased more than 71,000 acres of the Kenai National Moose Range, now part of the 1.92 million-acre Kenai National Wildlife Refuge.
By June 1962, about 50 wells were producing more than 20,000 barrels of oil a day. Richfield Oil Company merged with Atlantic Refining Company in 1966, becoming Atlantic Richfield (ARCO), which with Exxon discovered the giant Prudhoe Bay field in 1968.
Learn about the 49th state in First Alaska Oil Wells.
July 20, 1920 – Discovery Well of the Permian Basin
The Permian Basin made headlines in 1920 when a wildcat well erupted oil from a depth of 2,750 feet on land owned by Texas Pacific Land Trust agent William H. Abrams, who just weeks earlier had discovered the West Columbia oilfield in Brazoria County south of Houston.
The latest W.H. Abrams No. 1 well — “shot” with nitroglycerin by the Texas Company (later Texaco) — proved to be part of the Permian Basin, encompassing 75,000 square miles in West Texas and southeastern New Mexico.
The Permian Basin would become the leading source of U.S. oil. Image courtesy Rigzone.
According to a Mitchell County historical marker, “land that sold for 10 cents an acre in 1840 and $5 an acre in 1888 now brought $96,000 an acre for mineral rights, irrespective of surface values…the flow of oil money led to better schools, roads and general social conditions.”
A 1923 Permian Basin well near Big Lake brought yet another Texas drilling boom — and helped establish the University of Texas (see Santa Rita taps Permian Basin).
July 20, 2006 – Hughes Glomar Explorer recognized as Engineering Landmark
Former top-secret CIA ship Hughes Glomar Explorer, which became a pioneering petroleum industry drillship, was designated a mechanical engineering landmark during a Houston awards ceremony that included members of the original engineering team and the ship’s crew.
The American Society of Mechanical Engineers (ASME) in 2006 proclaimed Hughes Glomar Explorer, “a technologically remarkable ship.” Illustration courtesy ASME.
The American Society of Mechanical Engineers (ASME) designated the vessel, a technologically remarkable ship and historic mechanical engineering landmark. Built in 1972 as a clandestine Soviet submarine recovery project, the vessel’s design was “decades ahead of its time for working at extreme depths.” Modified and relaunched in 1998, Glomar Explorer became the pioneer of all modern drillships.
Learn more in Secret History of Drill Ship Glomar Explorer.
July 21, 1935 – “Diamond Glenn” McCarthy strikes Oil
Glenn H. McCarthy struck oil 50 miles east of Houston in 1935, extending the already prolific Anahuac field. The well was the first of many for the Texas independent producer who would discover 11 Texas oilfields by 1945.
McCarthy became known as another “King of the Wildcatters” and “Diamond Glenn” by 1950, when his estimated worth reached $200 million ($2 billion today).
Glenn McCarthy appeared on TIME magazine in 1950.
In addition to his McCarthy Oil and Gas Company, McCarthy eventually owned a gas company, a chemical company, a radio station, 14 newspapers, a magazine, two banks, and the Shell Building in Houston. In the late 1940s, he invested $21 million to build the 18-story, 1,100-room Shamrock Hotel — and reportedly spent $1 million on its St. Patrick’s Day 1949 opening gala, which newspapers dubbed, “Houston’s biggest party.”
Learn more in “Diamond Glenn” McCarthy.
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Recommended Reading: Stages to Saturn: A Technological History of the Apollo/Saturn Launch Vehicles
(2003); Wildcatters: Texas Independent Oilmen
(1984); From the Rio Grande to the Arctic: The Story of the Richfield Oil Corporation
(1972); Kenai Peninsula Borough, Alaska
(2012); Texon: Legacy of an Oil Town, Images of America
(2011); Oil in West Texas and New Mexico
(1982); The Big Rich: The Rise and Fall of the Greatest Texas Oil Fortunes
(2009). Your Amazon purchase benefits the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.
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The American Oil & Gas Historical Society (AOGHS) preserves U.S. petroleum history. Please become an AOGHS annual supporter and help maintain this energy education website and expand historical research. For more information, contact bawells@aoghs.org. © 2024 Bruce A. Wells. All rights reserved.
by Bruce Wells | Mar 11, 2024 | This Week in Petroleum History
March 11, 1829 – Kentucky Salt Well Driller discovers Oil –
Boring for brine with a simple spring-pole method on a farm near Burkesville, Kentucky, Martin Beatty found oil at a depth of 171 feet. Disappointed, he searched elsewhere. Beatty drilled brine wells to meet demand from Kentucky settlers who needed salt to help preserve food. He bored his wells by percussion drilling, raising and dropping a chisel suspended from a sapling, an ancient drilling technology.
The 1829 “American Oil Well” of Burksville, Kentucky, drilled to find brine, produced oil later bottled and sold as medicine.
Historian Sheldon Baugh described the scene of Beatty’s 1829 oil discovery: “On that day, well-driller Beatty bragged to bystanders, ‘Today I’ll drill her into salt or else to Hell.’ When the gusher erupted he apparently thought he’d succeeded in hitting Hell. As the story goes, he ran off into the hills and didn’t come back.”
Beatty’s discovery would be neglected for years — until oil from his well was sent to Pittsburgh, where Samuel Kier bottled and sold it as medicine. Kier also would build the earliest refineries for turning oil into kerosene for lamps.
Learn more in Kentucky’s Great American Oil Well.
March 11, 1930 – Society of Exploration Geophysicists founded
The Society of Exploration Geophysicists (SEG) was founded by 30 men and women in Houston as the Society of Economic Geophysicists, to foster “the expert and ethical practice of geophysics in the exploration and development of natural resources.”
The society began publishing its journal Geophysics in 1936, and in 1958 formed a scholarship trust for students of geophysics. In 2021, SEG and the American Association of Petroleum Geologists (AAPG) combined annual meetings to create the International Meeting for Applied Geoscience & Energy (IMAGE), which in 2023 attracted 7,329 global attendees.
March 12, 1912 – Thomas Slick discovers First of Many Oilfields
Once known as “Dry Hole Slick,” Thomas B. Slick discovered a giant oilfield midway between Oklahoma City and Tulsa. His No. 1 Wheeler uncovered the Drumright-Cushing field, which produced for the next 35 years, reaching 330,000 barrels of oil a day at its peak. Knowing speculators would descend on the area when word got out, Slick secretly hired all of the local livery rigs.
Tom Slick is among those honored at the Conoco Oil Pioneers plaza at the Sam Noble Museum, University of Oklahoma, Norman.
After his success in Cushing, Slick began an 18-year streak of discovering some of America’s most prolific fields in Oklahoma, Kansas, and Texas. His discoveries during the Greater Seminole Oil Boom of the 1920s made him the leading independent producer in the United States with a net worth up to $100 million.
By 1930 in the Oklahoma City field alone, Slick completed 30 wells with the capacity to produce 200,000 barrels of oil a day. When he died suddenly the same year from a stroke at age 46, oil derricks in the Oklahoma City field stood silent for one hour in tribute to Slick.
Learn more in Oklahoma’s King of the Wildcatters.
March 12, 1914 – Last Coal Powered U.S. Battleship Commissioned
The USS Texas, the last American battleship built with coal-fired boilers, was commissioned. Coal-burning boilers, which produced dense smoke and created tons of ash, required the Navy to maintain coaling stations worldwide. Coaling ship was a major undertaking and early battleships carried about 2,000 tons with a crew of “coal passers.”
The USS Texas’ coal-powered boilers were converted to burn fuel oil in 1925. Photo courtesy Battleship Texas State Historic Site.
Dramatic improvement in efficiency came when the Navy began adopting fuel oil boilers. By 1916, the Navy had commissioned its first two capital ships with oil-fired boilers, the USS Nevada and the USS Oklahoma. To resupply them, “oilers” were designed to transfer fuel while at anchor, although underway replenishment was soon possible in fair seas.
The USS Texas was converted to burn fuel oil in 1925. The “Big T” — today the Battleship Texas State Historic Site docked on the Houston Ship Channel — was the first battleship declared to be a U.S. National Historic Landmark.
Learn more in Petroleum and Sea Power.
March 12, 1943 – WWII Roughnecks of Sherwood Forest
A top-secret team of 42 American drillers, derrickhands, roustabouts, and motormen boarded the troopship HMS Queen Elizabeth. They were volunteers from two Oklahoma companies, Noble Drilling and Fain-Porter Drilling. Their mission was to drill wells in England’s Sherwood Forest and help relieve the crisis caused by German submarines sinking Allied oil tankers. Four rotary drilling rigs were shipped on separate transport ships. One of the ships was sunk by a U-Boat.
Volunteer roughnecks from two Oklahoma drilling companies embarked for England in March 1943. Derrickhand Herman Douthit would not return.
With the future of Great Britain depending on petroleum supplies, the Americans used Yankee ingenuity to drill an average of one well per week. Their secret work added vital oil to fuel the British war effort.
Learn more in Roughnecks of Sherwood Forest.
March 12, 1968 – Alaska’s Prudhoe Bay Oilfield Discovered
Two hundred and fifty miles north of the Arctic Circle, Alaska’s Prudhoe Bay oilfield was discovered by Richfield Oil (ARCO) and Humble Oil Company (Exxon). The Prudhoe Bay State No. 1 exploratory well arrived more than six decades after the first Alaska oil well. It followed Richfield Oil’s discovery of the Swanson River oilfield on the Kenai Peninsula in 1957.
Map courtesy Alaska Oil and Gas Conservation Commission. Photo from 1969 courtesy Atlantic Richfield Company.
At more than 213,000 acres, the Prudhoe Bay field was the largest oilfield in North America, surpassing the 140,000 acre East Texas oilfield discovery of 1930. Prudhoe Bay’s remote location prevented oil production beginning in earnest until 1977, after completion of the 800-mile Trans-Alaska Pipeline.
Prudhoe Bay field’s production exceeded an average rate of one million barrels of oil a day by March 1978, according to the Alaska Oil and Gas Conservation Commission. It peaked in January 1987 at more than 1.6 million barrels of oil per day.
March 13, 1974 – OPEC ends Oil Embargo
A five-month oil embargo against the United States was lifted by Arab members of the Organization of Petroleum Exporting Countries (OPEC), a cartel formed in 1960. The embargo, imposed in response to America supplying the Israeli military during the October 1973 Yom Kippur War, created gasoline shortages, prompting President Richard M. Nixon to propose voluntary rationing and a ban of gas sales on Sundays. OPEC ended the embargo after Secretary of State Henry Kissinger negotiated an Israeli troop withdrawal from parts of the Sinai.
March 14, 1910 – Lakeview No. 1 Well erupts in California
The Union Oil Company Lakeview No. 1 well erupted a geyser of oil at dawn in Kern County, California (some sources give the date as March 15). With limited technologies for managing the deep, highly pressured formation of the Midway-Sunset field, drillers had experienced several accidental oil spills, including the Shamrock gusher in 1896 and the 1909 Midway gusher.
A marker and remnants of a sand berm north of Maricopa, California, mark the site of a 1910 Union Oil gusher that flowed uncontrolled for 18 months. Photo courtesy San Joaquin Valley Geology.
“But none of these wells came close to rivaling the Lakeview No. 1 which flowed, uncapped and untamed, at 18,000 barrels a day for 18 months,” noted a San Joaquin Valley geologist. Surrounded by berms and sandbags to contain the oil, the well collapsed and died in September 1911, after producing 9.4 million barrels of oil (about half was contained and sold).
Oil erupted in California’s Midway-Sunset oilfield on March 14, 1910. Contained by sandbags by October, the Lakeview No. 1 well produced 9.4 million barrels during the 544 days it flowed. Photo courtesy San Joaquin Valley Geology.
The environmental impact of the Lakeview well, still the largest oil spill in U.S. history, was less destructive due to evaporation and levees of sandbags that prevented contamination of Buena Vista Lake. A Kern County historic marker was erected in 1952 at the site, seven miles north of the West Kern Oil Museum.
The ram-type blowout preventer to seal well pressure was invented in 1922.
March 15, 1946 – Texas Independents produce TIPRO
With Texas oilfield discoveries resulting in overproduction, declining prices, oilfield thefts, and conflicts with major oil companies, independent producers formed a trade association to lobby federal and state lawmakers. The Texas Independent Producers and Royalty Owners Association (TIPRO) was established “to preserve the ability to explore and produce oil and natural gas and to promote the general welfare of its members.”
March 15,1985 – Gulf Oil becomes Chevon
Gulf Oil Corporation, founded in 1907 by Andrew and William Mellon of Pittsburgh, Pennsylvania, merged with Socal, the Standard Oil Company of California (see First California Oil Well). The combined companies re-branded as Chevron in the United States, and the Hinduja Group acquired the Gulf name and products, creating Gulf Oil International, a lubricants company.
March 16, 1911 – Pegasus Trademark takes Flight
A Vacuum Oil Company subsidiary in Cape Town, South Africa, trademarked a flying horse logo inspired by Pegasus of Greek mythology. Based in Rochester, New York, Vacuum Oil had built a successful lubricants business long before gasoline was a branded product.
When Vacuum Oil and Standard Oil of New York (Socony) combined in 1931, the Socony-Vacuum Oil Company adopted the winged horse trademark and marketed Pegasus Spirits and Mobilegas products.
The original Mobil Pegasus logo was registered in 1911 by a South Africa subsidiary of New York-based Vacuum Oil Company.
A stylized red gargoyle earlier had advertised the company, which produced petroleum-based lubricants for carriages and steam engines. Created by the Vacuum Oil Company of South Africa, the Pegasus trademark proved to be a far more enduring image.
Learn more oil and gas history in Mobil’s High-Flying Trademark.
March 16, 1914 – “Main Street” Oil Well completed in Oklahoma
A well completed in 1914 produced oil from about 1,770 feet beneath Barnsdall, Oklahoma. The popular TV program Ripley’s Believe It or Not would proclaim the well the “World’s Only Main Street Oil Well.”
An oil well pump in the middle of Main Street in Barnsdall, Oklahoma, was visited by American Oil & Gas Historical Society volunteer Tim Wells in 2016. Photo by Bruce Wells.
The town originally was called Bigheart, named for Osage Chief James Bigheart, who on behalf of the Osage people in 1875 signed the first lease for oil and gas exploration, according to Osage County. In 1922, Barnsdall was renamed for Theodore Barnsdall, owner of the Barnsdall Refining Company, which later became part of Baker Hughes Company. The National Register of Historic Places added the Barnsdall Main Street oil well in 1997.
March 17, 1890 – Sun Oil Company founded
The Peoples Natural Gas Company, founded four years earlier by Joseph Pew and Edward Emerson to provide natural gas to Pittsburgh, expanded to become the Sun Oil Company of Ohio.
Sun Oil Company brands from 1894 to 1920 (top) to SONOCO from 1920 to 1954.
At the turn of the century, the company had acquired promising leases near Findlay and entered the business of “producing petroleum, rock and carbon oil, transporting and storing same, refining, purifying, manufacturing such oil and its various products.” Sun Oil marketed Sunoco Motor Oil beginning in the 1920s, and became an oilfield equipment supplier in 1929, forming Sperry-Sun.
March 17, 1923 – Oklahoma Discovery leads to Giant Oilfields
The Betsy Foster No. 1 well, a 2,800-barrel-a-day oil gusher near Wewoka, county seat of Seminole County, Oklahoma, launched the Seminole area boom. The discovery south of Oklahoma City was followed by others in Cromwell and Bethel (1924), and Earlsboro and Seminole (1926). Thirty-nine separate oilfields were be found at Seminole and Pottawatomie, Okfuskee, Hughes, and Pontotoc counties. Once among the poorest economic regions in Oklahoma, by 1935 the greater Seminole area became the largest supplier of oil in the world.
March 17, 1949 – First Commercial Application of Hydraulic Fracturing
A team from Halliburton and Stanolind companies converged on an oil well about 12 miles east of Duncan, Oklahoma, and performed the first commercial application of hydraulic fracturing.
A 1947 experimental well had fractured a natural gas field in Hugoton, Kansas, and proven the possibility of increased productivity. The technique was developed and patented by Stanolind (later known as Pan American Oil Company) and an exclusive license was issued to Halliburton Company to perform the process. Four years later, the license was extended to all qualified oilfield service companies.
The first commercial hydraulic fracturing job (above) took place in 1949 about 12 miles east of Duncan, Oklahoma. Photo courtesy Halliburton.
“Since that fateful day in 1949, hydraulic fracturing has done more to increase recoverable reserves than any other technique,” proclaimed a Halliburton company spokesman in 2009, adding that more than two million fracturing treatments have been pumped without polluting an aquifer.
Erle P. Halliburton had patented an efficient well cementing technology in 1921 that improved oil production while protecting the environment. The earliest attempts to increase petroleum production by fracturing geologic formations began in the 1860s.
Learn more in Shooters – A ‘Fracking’ History.
March 17, 1949 – “Diamond Glenn” opens Shamrock Hotel
Texas independent producer “Diamond Glenn” McCarthy hosted the grand opening of his $21 million, 18-story, 1,100-room Shamrock Hotel on the outskirts of Houston. McCarthy reportedly spent another $1 million for the hotel’s St. Patrick’s Day opening day gala, including arranging for a 16-car Santa Fe Super Chief train to bring friends from Hollywood.
After paying $21 million to construct the Shamrock Hotel, Glenn McCarthy spent another $1 million for its grand opening on St. Patrick’ Day 1949. The 1,100-room Houston hotel was demolished in 1987.
The Texas wildcatter, who had discovered 11 oilfields by 1945, also introduced his own label of bourbon at Shamrock, the largest hotel in the United States at the time. Dubbed Houston’s biggest party, the Shamrock’s debut “made the city of Houston a star overnight,” one newspaper reported.
Learn more in “Diamond Glenn” McCarthy.
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Recommended Reading: A Geophysicist’s Memoir: Searching for Oil on Six Continents
(2017); “King of the Wildcatters:” The Life and Times of Tom Slick, 1883-1930
(2004); Historic Battleship Texas: The Last Dreadnought
(2007); The Secret of Sherwood Forest: Oil Production in England During World War II
(1973); Discovery at Prudhoe Bay Oil
(2008); San Joaquin Valley, California, Images of America
(1999); A History of the Greater Seminole Oil Field
(1981); The Frackers: The Outrageous Inside Story of the New Billionaire Wildcatters 
(2014).; The Green and the Black: The Complete Story of the Shale Revolution, the Fight over Fracking, and the Future of Energy
(2016); Corduroy Road: The story of Glenn H. McCarthy (1951).
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The American Oil & Gas Historical Society (AOGHS) preserves U.S. petroleum history. Become an annual AOGHS supporter and help maintain this energy education website and expand historical research. For more information, contact bawells@aoghs.org. Copyright © 2024 Bruce A. Wells. All rights reserved.
by Bruce Wells | Mar 11, 2020 | Petroleum Companies
Just two years after being featured on the cover of TIME in 1950, Texas wildcatter “Diamond” Glenn McCarthy was in serious financial trouble with one of his many oil ventures. On April 8, 1952, the Baytown (Texas) Sun reported, ”Glenn McCarthy stepped down today as chairman of the board of the firm which made him a multimillionaire – but couldn’t pay its bills.”
The McCarthy Oil & Gas Company mortgage debt was $34 million, including his beloved 18-story, 1,100-room Shamrock Hotel, which “introduced Houston as a dynamic city of the future to the rest of the nation,” the Houston Business Journal later proclaimed. McCarthy Oil & Gas was lost to the Equitable Assurance Society of the United States, prompting McCarthy’s ouster.
Texas independent producer Glenn McCarthy appeared on the February 13, 1950, cover of TIME.
Undeterred, the Texas wildcatter who had discovered 11 oilfields by 1945 announced formation of a new company, Glenn McCarthy, Inc. He would seek new oil and natural gas fields in Bolivia. His plan was that the new firm would be a “poor man’s” company with 60 million shares to be sold at $2 each, encouraging “little investors” to gamble on his wildcatting reputation.
In October 1953, McCarthy offered the first 10 million shares of Glenn McCarthy, Inc. to the public. The company prospectus noted it was a speculative venture, with its principle assets being petroleum leases in Bolivia totaling 970,000 acres in the Andes foothills.
McCarthy intended to market the oil and natural in Bolivia, Argentina, and Uruguay, but not in the distant United States. Newspapers reported McCarthy had launched, “a new effort to climb from ‘rags to riches,’ a route over which he’s passed several times in both directions.”
A blitz of sales promotions and mail-in stock order forms reached newspapers all over Texas. Then came good news from South America: In September 1954, Glenn McCarthy, Inc., completed its first Bolivian oil well. The discovery was on the Los Monos concession and produced 100 barrels of oil a day in addition to some natural gas. The well’s depth was reported to be between 9.000 feet and 12,000 feet – the deepest well in Bolivia.
However, the lack of pipeline and rail infrastructure prohibited effective marketing of the crude oil to refineries (a frequent problem for wells drilled in remote areas, see Million Barrel Museum). Lack of infrastructure proved disastrous for Glenn McCarthy, Inc.
As described in The Big Rich: The Rise and Fall of the Greatest Texas Oil Fortunes, by Bryan Burrough, “McCarthy dragged himself back from Bolivia in 1957, bruised, battered, and, if not exactly penniless, no longer a rich man; unable to build a pipeline to transport the natural gas he had discovered, he sold his Bolivian interests to a group of American companies for $1.5 million, much of which he used to repay debts.“
Although McCarthy recovered somewhat financially, the Glenn McCarthy, Inc., passed into history, joining the legend of “Diamond Glenn” and leaving its collectible stock certificates. McCarthy and his wife Faustine lived a quiet life in a modest two-story house near La Porte, Texas. The once famous Texas wildcatter died the day after Christmas, 1988.
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The stories of exploration and production companies joining petroleum booms (and avoiding busts) can be found updated in Is my Old Oil Stock worth Anything? The American Oil & Gas Historical Society preserves U.S. petroleum history. Please support this energy education website. For membership information, contact bawells@aoghs.org. © 2021 AOGHS. All rights reserved.
