This Week in Petroleum History: June 24 – 30

June 24, 1937 – Traces of Oil found in Minnesota –

In far western Minnesota, a remote wildcat well drilled in Traverse County began producing three barrels of oil a day from a depth of 864 feet. The unlikely discovery prompted more leasing, but no commercial quantities of oil.

Oil well in one county of Minnesota mao.

Traverse County, Minnesota, where oil production peaked in 1937.

The lack of an oilfield reaffirmed geologists’ conclusions since 1889 that conditions for significant petroleum deposits did not exist in Minnesota, despite some water wells in southern Minnesota containing small amounts of natural gas.

“Not much oil and gas is obtained from Precambrian rocks, with which Minnesota is very amply blessed,” noted the 1984 book Minnesota’s Geology.

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June 25, 1889 – First Oil Tanker catches Fire in California

The first oil tanker built for that purpose, a schooner named W.L. Hardison, burned at its wharf in Ventura, California. The Hardison & Stewart Oil Company (later Union Oil) commissioned the experimental vessel, which offered an alternative to paying for railroad oil tank cars charging one dollar per oil barrel to reach markets in San Francisco.

With oil-fired steam boilers and supplemental sails, the schooner could ship up to 6,500 barrels of oil below deck in specially constructed steel tanks. After the fire, the tanks were recovered and used at the company’s Santa Paula refinery. It took 11 years before the company launched a replacement tanker, the Santa Paula.

Rare photographs of the oil doomed tanker W.L. Hardison.

Rare photographs of the oil doomed tanker W.L. Hardison and Ventura pier courtesy the Museum of Ventura County.

The Ventura Wharf Company by April 1898 had exported 518,204 barrels of bulk oil during the previous year, according to the Los Angeles Times.  The pier remained a working wharf until 1936, when it became the longest recreational wooden pier in California.

Designated a Ventura Historic Landmark in 1976 and now 1,600 feet long, California’s oldest pier was refurbished for $2.2 million in 2000, according to the Museum of Ventura County, which also operates archaeological and agricultural museums. In nearby Santa Paula, the 1890 headquarters building of Union Oil Company is home to the California Oil Museum.

June 25, 1901 – Red Fork Discovery leads to Tulsa Boom

Six years before statehood, Oklahoma witnessed a second oil discovery (some say the third — see Another First Oklahoma Oil Well) when two drillers from the Pennsylvania oil regions discovered an oilfield at Red Fork in the Creek Indian Nation.

John Wick and Jesse Heydrick drilled the Sue A. Bland No. 1 well  near the Creek village across the Arkansas River from Tulsa. Sue Bland, a Creek citizen, was the wife of homesteader Dr. John C. W. Bland. Their Red Fork well produced just 10 barrels of oil a day from a depth of 550 feet, but created a drilling boom attracting petroleum companies to nearby Tulsa.

Learn more in  Red Fork Gusher.

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June 25, 1999 – Texas Post Office named Historic Place

The former U.S. Post Office building in Graham, Texas, with its Great Depression-era oilfield mural by Alexandre Hogue, joined the National Register of Historic Places. Hogue’s 1939 “Oil Fields of Graham” has been joined by other art exhibits in its historic Art Deco building on Third Street.

Oil Fields of Graham by Alexandre Hogue, a 1939 mural that is 12 feet wide and 7 feet high, was restored in 2002 at the Old Post Office Museum & Art Center, in Graham, Texas.

“Oil Fields of Graham” by Alexandre Hogue, a 1939 mural restored in the Old Post Office Museum & Art Center of Graham, Texas. The white-haired gentleman was Graham mayor.

Hogue’s artwork included many southwestern scenes as part of the New Deal Federal Arts Program. His murals on the walls of public buildings often portrayed scenes of the Texas petroleum industry. In Graham’s historic building on Third Street, “Oil Fields of Graham,” 12 feet wide and 7 feet high, is among exhibits at the Old Post Office Museum & Art Center, which opened in 2002.

Learn more in Oil Art of Graham, Texas.

June 26, 1885 – Natural Gas Utility established in Pennsylvania

Peoples Natural Gas Company incorporated — the first Pennsylvania natural gas company chartered by the state to regulate production, transmission, and distribution of natural gas. A similar utility incorporation had taken place a year earlier in New York City when six competing companies combined to form Consolidated Edison.

By 1891, the Pittsburgh-based limited liability company had consolidated pipelines and facilities of Pittsburgh Natural Gas, Lawrence Natural Gas, Conemaugh Gas, and Columbia Natural Gas companies. More than a dozen more companies would be acquired between 1903 and 1961. The large utility added Saxonburg Heat and Light in 1979 and Equitable Gas in 2017, expanding natural gas services in West Virginia and Kentucky.

June 28, 1887 – Kansans celebrate First Natural Gas Jubilee

After erecting flambeau arches at the four corners of the town square, Paola, Kansas, hosted what local leaders described as “the first natural gas celebration ever held in the West.” Excursion trains from Kansas City brought about 2,000 people, “to witness the wonders of natural gas,” according to the Miami County Historical Museum, which preserves the region’s petroleum history.

Oil well with visitors in Miami County, Kansas, circa 1920.

Paola’s giant natural gas field attracted more petroleum exploration to Miami County, including this circa 1920 oil well. Photo courtesy Kansas Historical Society.

The town’s special event included a “grand illumination” of natural gas street lights, where “gas was attached to a yard sprinkler by a rubber hose, and when it was ignited there appeared nests of small blazes which were beautiful and attractive.”

Learn more in First Kansas Oil Well.

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June 28, 1967 – Hall of Petroleum opens in Smithsonian Museum

The Hall of Petroleum opened at the Smithsonian Institution’s Museum of History and Technology in Washington, D.C. Exhibits included cable-tool and rotary rig drilling technologies and counterbalanced pumping units, The Hall of Petroleum also featured 1967 developments in offshore exploration and production.

Visitors to what in 1980 became the National Museum of American History were greeted by a mural painted by Delbert Jackson of Tulsa, Oklahoma. Jackson spent two years creating his 13-foot by 56-foot painting with scenes of oil and natural gas exploration, production, refining, and transportation.

"Panorama of Petroleum” a 1967 mural by Delbert Jackson of Tulsa.

A “Panorama of Petroleum” once greeted visitors to the Smithsonian’s American History Museum in Washington, D.C. The 13-foot by 56-foot mural today is exhibited inside Tulsa International Airport.

Jackson’s “Panorama of Petroleum” featured industry pioneers and served as a visual map to the hall’s oilfield technology exhibits. “If the hall can increase the public’s knowledge of and respect for the technical skill and know-how of those who make this energy available, it will have served its purpose,” noted the exhibit’s 1967 catalog. The mural ended up in storage for three decades, until finding a home at Tulsa International Airport.

Learn more in Smithsonian’s “Hall of Petroleum.

June 29, 1956 – Interstate Highway System enacted

The Federal-Aid Highway Act of 1956, popularly known as the National Interstate and Defense Highways Act, became law. Passed at the urging of President Dwight D. Eisenhower, the act provided 90 percent federal funding for a “system of interstate and defense highways,” and authorized spending $25 billion through 1969 for construction of about 41,000 miles of interstates.

map of US interstate system

The U.S. interstate system had a total length of 48,191 miles by 2016. Federal regulations initially banned collecting tolls, but some now include tolls.

“Of all his domestic programs, Eisenhower’s favorite by far was the Interstate System,” noted historian Stephen Ambrose. The thirty-fourth president urged passage of the act for national defense; interstates would be needed for evacuating major cities during a nuclear war.

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June 30, 1864 – Oil Tax funds Civil War

The federal government taxed oil for the first time when it levied a $1 per barrel tax on production from Pennsylvania oilfields.

One Dollar bill circa Civil War

Seeking ways to pay for the Civil War, Treasury Secretary Salmon Chase, featured prominently on the $1 “greenback,” advocated an oil tax.

Desperate for revenue to fund the Civil War as early as 1862, Treasury Secretary Salmon Chase advocated a $6.30 tax per barrel of oil and $10.50 per barrel on refined products. Angry oil producers rallied against the tax in Oil City, Pennsylvania, and sent delegates to Washington, D.C., where they negotiated a tax of $1 per 42-gallon barrel of oil.

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Recommended Reading: Minnesota’s Geology (1982); Black Gold in California: The Story of California Petroleum Industry (2016); Early California Oil: A Photographic History, 1865-1940 (1985); Tulsa Oil Capital of the World, Images of America (2004); Oil in West Texas and New Mexico (1982); Official Guide to the Smithsonian (2016); Eisenhower: Soldier and President (1968); Western Pennsylvania’s Oil Heritage (2008). 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.

Otter Creek Oil & Gas Company

otter creek oil

A 1918 directory praised Otter Creek Oil & Gas Company executive W.M. Jamieson.

A Mid-Continent oil discovery in 1915 revealed the giant El Dorado field and launched a Kansas oil boom. A subsidiary of Cities Service Company completed the Stapleton No. 1 well on October 5, 1915, in Butler County.

The discovery attracted many new and established companies to El Dorado and nearby Wichita, including Otter Creek Oil & Gas Company. According to the Kansas Oil Museum, the El Dorado oilfield, which proved to be 34-square-miles, was the first ever found using the science of petroleum geology.

“Before 1915, geologists were seen in the same vein as witching and doodlebugs. They were just charlatans,” explains Warren Martin in a 2015 Butler County Times-Gazette article on the centennial of the Stapleton No. 1 well. “It fundamentally transformed it from that point going forward. Geology was established as one of the great science industries.”

The earliest geological map of North America had been made in 1809. Geologic mapping in California began as early as 1826. Petroleum geology in the United States first gained status as a profession in 1917, when the American Association of Petroleum Geologists was organized.

Kansas oil discoveries (including an 1892 well at Neodesha), and gushers in North Texas, demonstrated existence of a petroleum-producing geologic region in the central and southwestern United States. Production from the Mid-Continent today includes hundreds of oilfields reaching from Kansas, Oklahoma and Texas into parts of Louisiana and Missouri.

Otter Creek Oil & Gas Company

Otter Creek Oil & Gas Company was formed in the summer of 1917 by three Wichita businessmen: A. Sautter, A.J. Engler and W.M. Jamieson. Sautter was associated with Piedmont Petroleum Company, which reportedly had drilled wells near Tussy, Oklahoma. Jamieson was among those featured in the Illustrated Directory of Kansas Oilmen in 1918:

otter creek oil“In writing up Mr. W.M. Jamieson, secretary of Otter Creek Oil and Gas Company, it is unnecessary to resort to flower epigrams and dig up camouflage sensations,” noted the booklet featuring selected leaders of Butler County exploration companies and refineries, “with their commercial interests and homes.”

Otter Creek Oil & Gas Company had incorporated with a declared a capital par value of $1 per share and offered 100,000 shares. The company recorded 43 stock holders and holdings of 580 acres in Greenwood County, Kansas, Otter Creek township. Greenwood County borders Butler County to the east.

Although the company’s establishment corresponded with a surge in demand for petroleum that had begun at the start of World War I, production from a series of oilfield discoveries, including the “Roaring Ranger” in Texas, brought the industry’s familiar boom and bust cycle in prices.

Contemporary periodicals intermittently reported on Otter Creek Oil & Gas drilling operations in Greenwood County. Some reports included section-township-range descriptions, but records about the company’s exploratory wells have been elusive; reporting errors at the time also were frequent. There were other similarly named exploration companies in the region, too.

In November 1918, when the trade publication Oil & Gas News reported an Otter Creek Oil & Gas well to be shut down, company President Sautter demanded a correction. “I do not know where you got your information, but whoever gave it to you was wrong,” he declared, adding that “we have never been shut down,” and “for the information of our stockholders and the general public, I ask you to rectify this statement.”

otter creek oilAn Otter Creek township map shows properties owned by the McMillen family, who leased their mineral rights to Otter Creek Oil & Gas for oil exploration.

The November 20, 1919, Oil Distribution News reported the company’s well on that property to be shut down at 1,300 feet deep (Section 5, Township 28 South, Range 9 East), Greenwood County. The company’s outlook improved by April 1920, when another well attempt, again on the McMillen lease, drilled to a depth of 2,500 feet and reportedly set casing, indicating some oil production.

However, oilfield fortunes could change suddenly, leaving little explanation as to what happened. Intense competition throughout the Mid-Continent fields made good prospects hard to come by and expensive. Contracted drilling costs typically skyrocketed during booms. Many companies arrived too late, and some went bankrupt without drilling a single well. On August 10, 1921, when the Wichita Beacon newspaper published a list of 37 companies that had failed, Otter Creek Oil & Gas was among them.

Promoting the Kansas Oil Industry

Although it did not resort to “flower epigrams” in its praise of W.M. Jamieson, secretary of Otter Creek Oil and Gas Company, the Illustrated Directory of Kansas Oilmen came close. The booklet, published in 1918 by the Muncipal Publicity Company, was intended to “truthfully depict the facts of the Oil Industry in our State.”

In 96 pages, the directory featured leaders of Wichita and El Dorado-based oil companies, Butler County refinery owners, and “their commercial interests and homes.” It also explained the significance of the giant oilfield’s production, noting it provided Buttler County with $130 million in 1917.

Mr. W.M. Jamieson, featured on page 25, was reported to have first arrived in Kansas in 1883, but left to mine coal in New Mexico. In 1903 Jamieson “served as superintendent of excavation and tracks in building the great filtration plant for the city of Washington, D.C.”

He also worked for a railroad construction company in Cuba and “the swamps of the Amazon” and other parts of South America, where he reportedly drilled oil wells in 1908, according to the directory’s biography. His page notes that returning to Kansas by 1916, he found “some of the choice acreage” in Greenwood County.

The booklet’s final description of Jamieson was the praise and prediction that “he always attempts such big things and, somehow, has a knack of putting them thru – all contribute to the conviction that his association with The Otter Creek Oil and Gas Co. is enough to ensure its success.”

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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?

AOGHS.org welcomes sponsors to help us preserve petroleum history. Please support this energy education website with a tax-deductible donation today. Contact bawells@aoghs.org for information on levels and types of available sponsorships.  © 2017 AOGHS.

Cahege Oil & Gas Company

Oil fever reached southeastern Kansas by the early 1900s. In October 1904, Missouri investors saw an opportunity in a new oil company with wells near proven oilfields at the Kansas-Oklahoma border.

Cahege Oil & Gas Company, headquartered in Carrollton, Missouri, leased 15,000 acres near Caney, Kansas, a region that had produced oil since the early 1890s.

According to the Daily Traveler newspaper in Arkansas City, Kansas, the recently formed company was drilling exploratory wells near Caney – and had “shot two wells on the Broome and St. John leases.” (more…)

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