Three petroleum exploration companies risked everything on one well in their gamble to to find an Oregon oilfield.
The lure of petroleum wealth invited speculators practically since the first U.S. oil well of 1859 in Pennsylvania. Exploratory wells especially have remained a high-risk investment since almost nine out of ten of these “wildcat” wells fail to produce commercial amounts of oil.
The Morrow No. 1 well, an ill-fated wildcat well first drilled in 1952 in Jefferson County, Oregon. Photo courtesy Oregon Department of Geology and Mineral Industries, “The Ore Bin,” Vol. 32, No.1, January 1970.
With under-capitalized operations turning to public sales of stock to raise money, many small ventures have been forced to bet everything on drilling a first successful well to have a chance at a second. Drilling a producing well can bring some wealth, but a “dry hole” brings bankruptcy.
And so it was in the 1950s on a remote hillside in Jefferson County, Oregon, where three companies searched for riches from the same well.
Northwestern Oils Inc.
The first of these three Oregon wildcatters, Northwestern Oils, incorporated in 1951 with $1 million capitalization in order to “carry on business of mining and drilling for oil.”
With offices in Reno, Nevada, in early 1952 Northwestern Oils began drilling a test well about eight miles southeast of Madras, Oregon. Using a cable-tool drilling rig (see Making Hole – Drilling Technology), drillers reached a depth of 3,300 feet on the Baycreek anticline before work was suspended because of “lost circulation troubles.”
Circulation troubles continued with the Morrow No. 1 well – also known as the Morrow Ranch well – in Jefferson County (Section 18, Township 12 South, range 15 East). By March 1956, with no money and no additional drilling possible, Northwestern Oils’ assets were “seized for non-payment of delinquent internal revenue taxes due from the corporation” and auctioned off at the Jefferson County courthouse.
Central Oils Inc.
Central Oils (Seattle) also was formed in 1956. With plans to join the other rare Oregon wildcatters, the company registered with the Security and Exchange Commission on July 30, 1958. It sought to sell one million shares of stock to the public at 10 cents a share. Proceeds would finance leasing and drilling, just like Northwestern Oils.
Central Oils received a permit to deepen Northwestern Oils’ old Morrow Ranch well in 1966 and planned to continue drilling with a cable-tool rig. Nothing happened.
“Commencement of this venture has been delayed until the spring of 1967,” one newspaper reported. But Central Oils had run afoul of the SEC. Oregon regulators recorded the well abandoned as of September 12, 1967, and Central Oils “out of business; no assets.”
Robert F. Harrison
In May 1968, Robert F. Harrison and his associates took over the same well — this time with plans to deepen it to more than 5,000 feet. But two years later the drilling effort was still stuck at a depth of 3,300 feet. Desperate, Harrison tried to clear the borehole by applying technologies for Fishing in Petroleum Wells.
On February 2, 1971, an intra-office report noted that R.F. Harrison “will abandon as soon as weather permits,” never having exceeded the original Northwestern Oils total depth of 3,300 feet. It would be a dry hole.
Harrison finally plugged and abandoned the Morrow No. 1 well as of October 12, 1971. Oregon’s Department of Geology and Mineral Industries has identified the stubborn nonproducer as well number 36-031-00003. There has never been a successful oil well drilled in Oregon.
America’s first dry hole was drilled in 1859 by John Grandin of Pennsylvania – near and just a few days after the first commercial discovery. In 2014, U.S. oil wells produced more than 8.7 million barrels of oil every day, according to the Energy Information Administration.
The stories of many exploration companies trying to join petroleum booms (and avoid busts) can be found in an updated series of research inIs my Old Oil Stock worth Anything?
Citation Information – Article Title: “Oregon Wildcatters.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/old-oil-stocks/oregon-wildcatters. Last Updated: February 26, 2025. Original Published Date: January 29, 2016.
Lucky life of John Steele and America’s earliest petroleum riches.
John Washington Steele’s good fortune began on December 10, 1844, when Culbertson and Sarah McClintock adopted him as an infant. The McClintocks also adopted his sister Permelia, bringing both home to the farm along Oil Creek in Venango County, Pennsylvania.
Fifteen years later, the U.S. petroleum industry began with an 69.5-foot-deep oil discovery at nearby Titusville, the first oil well drilled commercially for distilling into kerosene (also called coal oil).
The Pennsylvania oil regions that had been revealed at Oil Creek made the widow McClintock a fortune in royalties. When she died in a kitchen fire in 1864, Mrs. McClintock left her oil wealth to her only surviving child Johnny, who inherited $24,500 at age 20.
John Washington Steele of Venango County, Pennsylvania, inherited oil riches.
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 would earn his name in 1865 after such a legendary year of extravagance that years later, according to the New York Times.
“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” illustration from a 2010 Atlantic magazine article.
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. It describes the country’s fascination with the earliest economic booms brought by “black gold” discoveries in Pennsylvania.
“Before J.R. Ewing, or the Beverly Hillbillies, or even John D. Rockefeller, there was Coal Oil Johnny,” noted the October 18 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.”
Refurbished boyhood home of “Coal Oil Johnny” at Oil Creek State Park (and train station) north of Rouseville, Pennsylvania. Photo by Bruce Wells.
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 the 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,” he added.
John Washington Steele died in Nebraska in 1920.
“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.”
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.”
Citation Information – Article Title: Legend of “Coal Oil Johnny.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/legend-of-coal-oil-johnny. Last Updated: December 9, 2024. Original Published Date: April 29, 2013.
Indiana researcher’s “Informal History Notes” help preserve U.S. petroleum company legacies.
James Hinds of Columbus, Indiana, originally completed his extensively researched history of the Indian Refining Company in November 2003. His work documented the early histories of Havoline Motor Oil (through 1962) and the Texas Company, the future Texaco (through 1985).
“Emphasis was placed on Indian Refining Company and on an accurate account of Havoline’s early days,” Hinds noted about his extensively researched “Informal History Notes” emailed to the American Oil & Gas Historical Society in 2023. He added, “Please feel free to use (or not use) as you see fit.”
James Hinds Informal History Notes
INDIAN REFINING COMPANY, INCORPORATED HAVOLINE Motor Oil (through 1962) The Texas Company / Texaco Inc. (through 1985)
Compiled by Jim Hinds, Columbus, Indiana November 2003
In Memory of R. R. Hinds, Distributor
FOREWORD
1. These notes consist of information which I (with appreciable assistance) have been able to piece together on the corporate history of INDIAN REFINING COMPANY, INCORPORATED, the origins of HAVOLINE Motor Oil, and (to a lesser extent) the history of The Texas Company / Texaco Inc. Emphasis was placed on INDIAN REFINING COMPANY, and on an accurate account of HAVOLINE’s early days, since surprisingly little such information (especially on the “old INDIAN”) is readily available elsewhere. They are by no means a comprehensive history of The Texas Company / Texaco Inc. but only attempt to cover those events which I believe were most relevant to the histories of INDIAN REFINING COMPANY and HAVOLINE Motor Oil.
2. I am aware that these notes conflict, in some details, with “The Texaco Story – The First Fifty Years 1902-1952” (Marquis James, The Texas Company, 1953) which has come to be viewed as the “official history” of The Texas Company. Based on information which I have verified through multiple, independent sources, however, it appears that portions of the material with which Mr. James was given to work were either erroneous or misinterpreted.
3. It is recognized that “The Texas Company”, “TEXACO”, “HAVOLINE”, “INDIAN”, “FIRE-CHIEF”, and “Sky Chief” are or were registered trademarks of Texaco Inc. (a subsidiary of ChevronTexaco Corporation) or of its antecedents. They are used here for informational and historical research purposes, only. These notes are in no way an official publication of Texaco Inc. nor of ChevronTexaco Corporation.
A Texaco station was among the 2012 indoor exhibits featured at the National Route 66 Museum in Elk City, Oklahoma. Photo by Bruce Wells.
Chronology
28 March 1901 – The Texas Fuel Company is among some 200 companies organized in the days immediately following the famed oil strike at Spindletop Hill near Beaumont, Texas. The company establishes an office in Beaumont.
4 October 1901 – John F. Havemeyer of Yonkers, New York incorporates The Havemeyer Oil Company under the laws of that state, for purposes (as detailed on its certificate of incorporation) related to “lubricating and all other oils of every kind and nature” (probably referring to whale oil, other animal renderings, and – possibly – to various seed oils, in addition to petroleum).
2 January 1902 – The Texas Fuel Company begins business.
7 April 1902 – The Texas Fuel Company becomes The Texas Company and incorporates under the laws of the State of Texas.
1 January 1903 – “TEXACO” (having originated as the cable address of The Texas Company) is first used as a product name.
13 November 1903 – The Texas Company begins operations at its first refinery – Port Arthur [Texas] Works
14 November 1904 – Although its plant is physically located in the tiny northwestern-Indiana hamlet of Asphaltum, and 99.8% of its common and 100% of its preferred stock are listed in the name of 23-year-old Richmond M. Levering (a Lafayette, Indiana native currently residing in Chicago, Illinois), Indian Asphalt Company incorporates under the laws of the State of Maine. (While not recorded, it is speculated that the name “Indian” is an allusion to Indiana – meaning land or place “of Indians”.)
1904 – The Havemeyer Oil Company — having developed a unique cold-filtration process and blending package for oils — coins, and first uses, the name “HAVOLINE.”
1905 – Realizing that the Jasper County, Indiana oil field which it originally intended to exploit is effectively depleted, Indian Asphalt Company is persuaded (in “an extensive campaign by the [Georgetown] Board of Trade”) to move its offices and plant to Georgetown, Kentucky.
1 May 1906 – Growing quickly in both size and scope, Indian Asphalt Company changes its name to INDIAN REFINING COMPANY. Its plant is upgraded to “refinery” status and its product line expanded to include paraffin wax, paint, “Sunset Engine Oil”, “Bull Dog Compound”, and “Blue Grass Axle Grease” in addition to asphalt. Richmond M. Levering becomes the first president of the renamed company and is soon joined in business by his father and mentor – Indiana banker, financier, and entrepreneur J. Mortimer Levering – who becomes the company’s secretary.
8 December 1906 – “HAVOLINE” is registered as a trademark of The Havemeyer Oil Company for use as a brand name on oils (not strictly motor oil) and greases.
5 January 1907 – Havoline Oil Company (a “spin-off” of The Havemeyer Oil Company) is incorporporated under the laws of State of New York. As with The Havemeyer Oil Company, its stated purposes include production, purchase, refining, sales, and other dealings involving “animal” oils and fats as well as “mineral” (i.e. petroleum) oils.
1907 – Construction of INDIAN REFINING COMPANY’s Lawrenceville, Illinois refinery is completed and the refinery begins operation.
1908 – Although continuing to operate its Georgetown refinery, INDIAN REFINING COMPANY relocates its offices to Cincinnati, Ohio. The company also begins operation of a small refinery near East St. Louis, Illinois.
20 May 1909 – As part of a program of rapid expansion, INDIAN REFINING COMPANY incorporates under the laws of the State of New York and purchases The Havemeyer Oil Company, Havoline Oil Company, and the by-now established “HAVOLINE” name (which is then registered as a trademark of INDIAN REFINING COMPANY as a brand name for lubricating oils – again, not strictly motor oil).
1909 – Production of HAVOLINE products at the Lawrenceville refinery begins.
1 December 1909 – Following a brief illness, J. Mortimer Levering (secretary of INDIAN REFINING COMPANY) passes away.
17 December 1909 – The Havemeyer Oil Company is dissolved.
2 September 1910 – INDIAN REFINING COMPANY (Maine) is chartered to do business in the State of Louisiana and begins operating a refinery in New Orleans.
1909-1911 – Also included in this period of INDIAN REFINING COMPANY’s expansion are the purchases of the Bridgeport Oil Company (Bridgeport, Connecticut), the Record Oil Refining Company (Newark, New Jersey), a small refinery in Jersey City, New Jersey, and control of a large storage station at Kearny, New Jersey. The company launches a program aimed at making a full-scale entry into the European market.
16 March 1911 – Primarily in anticipation of expanding to the west coast, INDIAN REFINING COMPANY OF CALIFORNIA is created (and is incorporated under the laws of the State of New Jersey).
20 March 1911 – INDIAN REFINING COMPANY (New York) changes its name to INDIAN REFINING COMPANY OF NEW YORK and becomes the principal operating subsidiary of INDIAN REFINING COMPANY (Maine). The parent company’s main offices are moved from Cincinnati to New York City. Although its offices are moved, the company retains its close ties to the Cincinnati business community (which have existed since its inception as the Indian Asphalt Company) for many years. Its stock continues to be traded on the Cincinnati Stock Exchange and its board of directors includes (at various times) such well-known Cincinnati businessmen as William C. Procter, M. C. Fleischman, Lazard Kahn, and Bernard Kroger.
17 September – 6 November 1911 HAVOLINE Motor Oil lubricates the 28-horsepower engine of the first airplane to fly across the United States. Piloted by Calbraith Perry (“Cal”) Rodgers, the Wright EX bi-plane publicizes the new soft drink “Vin Fiz”, after which the the plane is named.
1 April 1912 – INDIAN REFINING COMPANY OF LOUISIANA incorporates under the laws of the State of Louisiana.
December 1913 – January 1914 In conjunction with a sweeping organizational and financial re- structuring, INDIAN REFINING COMPANY (Maine) applies for and receives “authority to do business” in the States of New York and California. It assumes those functions formerly performed by INDIAN REFINING COMPANY OF NEW YORK. The planned expansion to the far-West, however, is effectively cancelled and INDIAN REFINING COMPANY OF CALIFORNIA is dissolved.
1915 – INDIAN REFINING COMPANY closes its Georgetown, East St. Louis, and Jersey City refineries and abandons the company’s European venture (which has proven to be a severe financial drain due largely the First World War).
1916 – INDIAN REFINING COMPANY (Maine)’s president, Richmond M. Levering, resigns, as do several other senior officers of the company.
December 1918 – January 1919 In yet another reorganization, INDIAN REFINING COMPANY OF NEW YORK, INDIAN REFINING COMPANY OF LOUISIANA, Havoline Oil Company, the Record Oil Refining Company, and the Bridgeport Oil Company – all subsidiaries of INDIAN REFINING COMPANY (Maine) (hereafter referred to simply as INDIAN REFINING COMPANY) – are dissolved. The New Orleans plant is closed.
1920 – INDIAN REFINING COMPANY purchases the capital stock of the Central Refining Company, which is located immediately north of the Lawrenceville refinery. The Central refinery facilities are ultimately reconfigured for lubricants manufacture.
1923 – The general offices of INDIAN REFINING COMPANY are moved from New York City to Lawrenceville.
1924 – INDIAN REFINING COMPANY sells its remaining producing properties (consisting mainly of wells and leases in Illinois and Ohio) to the Ohio Oil Company (later to become the Marathon Oil Company).
1924 – The globes for INDIAN gasoline pumps are redesigned: a red “ball” with “INDIAN” arched above and “GAS” arched below (both in blue letters) on a white globe, replaces the reddish-brown and black “running Indian” design which was previously used. (One-piece globes also include “HAVOLINE”, in letters, vertically on each side.)
1924-1925 – Wishing to even more closely associate the two names, INDIAN REFINING COMPANY adopts a totally re-designed “HAVOLINE” trademark and virtually identical “INDIAN GAS” logo, both of which prominently feature the red-white-and-blue “ball” which had first been incorporated into the “HAVOLINE” logo in 1922. A “dot” is added to the middle of the “D” and above the second “I” in the word “INDIAN” (replicating the dots within the “O” and above the “I” in “HAVOLINE”). “INDIAN HI-TEST” Gasoline (made identifiable by red dye) is introduced on a limited basis.
1926 – The subsidiary Indian Pipe Line Corporation is sold to the Illinois Pipe Line Company.
May 1926 – The Texas Company introduces “New and Better TEXACO Gasoline”.
26 August 1926 – The Texas Corporation is incorporated under the laws of the State of Delaware and, by exchange of shares, acquires substantially all outstanding stock of The Texas Company (Texas).
20 April 1927 – The Texas Company incorporates (under the laws of the State of Delaware) as the principal operating subsidiary of The Texas Corporation. All assets of The Texas Company (Texas) are transferred to The Texas Company (Delaware) and The Texas Company (Texas) is dissolved. The Texas Corporation becomes the “parent company” of the by-now numerous “Texas Company” entities and other subsidiaries.
2 March 1928 – The Texas Corporation acquires the California Petroleum Corporation, which is reorganized as The Texas Company (California).
16 August 1929 – Its chemists and engineers (led by Dr. Francis X. Govers) having perfected a revolutionary solvent-dewaxing process, INDIAN REFINING COMPANY introduces “HAVOLINE WAXFREE” motor oil, replacing “HAVOLINE –the power oil” (which had, early in the 1920’s, supplanted “HAVOLINE It Makes a Difference”). (An economy “Blended HAVOLINE” is also offered, primarily in bulk.)
By 1930 “HAVOLINE” sales (both nation-wide and overseas) not only remain strong but grow, markedly, following the introduction of “HAVOLINE WAXFREE”. But, while it had once been in the retail gasoline, kerosene, and fuel oil markets (to varying extents) in over 25 states, the growing effects of the Depression, increasing difficulty in competing with the larger oil companies, the lack of reliable sources of crude, and (especially) the huge amount of money spent in developing the Govers solvent-dewaxing process, combine to force INDIAN REFINING COMPANY to retrench and restrict such marketing to Indiana, Michigan, eastern Illinois, northern Kentucky, and western Ohio. (Within this limited area, however, the company still has a well-developed and efficient distribution and sales network. Into the latter 1920’s, for example, “INDIAN” accounts for some 20% of all gasoline sales in Indiana.)
1930 – The Texas Corporation introduces “TEXACO Ethyl Gasoline” (which is renamed “FIRE-CHIEF Ethyl” 15 April 1932).
August 1930 INDIAN REFINING COMPANY introduces a higher-octane “regular” gasoline which is made identifiable by green dye and which is dubbed “INDIAN Green-Lite” Gasoline.
14 January 1931 – The Texas Corporation gains controlling interest in INDIAN REFINING COMPANY, including the rights to HAVOLINE Motor Oil (and the all-important Govers solvent-dewaxing process) and INDIAN REFINING COMPANY’s remaining active and inactive subsidiaries (the Indian Realty Corporation, the Central Refining Company, and the Havoline Oil Company of Canada, Ltd.). This also gives The Texas Corporation an established distribution and sales network and entry into the retail gasoline market in Indiana, Michigan, eastern Illinois, northern Kentucky, and western Ohio – areas in which it has not previously had any significant presence. (The Texas Corporation limits use of the “HAVOLINE” name to motor oil, only; it is not again used on products other than motor oil until the mid-1990’s)
14 January 1931 – 15 March 1943 INDIAN REFINING COMPANY continues in operation as an “affiliate” of The Texas Corporation, although all sales outlets and company facilities and equipment are re-badged as “TEXACO.” Production of “TEXACO” gasolines begins at the Lawrenceville refinery. An “INDIAN”-brand gasoline becomes a “sub-regular” (priced below “TEXACO” gasolines) and is added to the product line at most outlets, nation-wide. Production of “INDIAN” gasoline is included at other Texas Corporation refineries. (It is during this period that “INDIAN” pumps bear a distinctive plate – either round or rectangular – featuring an art deco Indian beadwork design.) National marketing and sales offices for INDIAN REFINING COMPANY are opened in Indianapolis, Indiana.
15 April 1932 – “TEXACO FIRE-CHIEF Gasoline” is introduced.
1934 – Furfural solvent-extraction (developed by The Texas Corporation) is combined with the Govers solvent-dewaxing process in the manufacture of “HAVOLINE WAXFREE”.
1935 – Production of “HAVOLINE WAXFREE” at Port Arthur Works is begun in order to supplement the output of the Lawrenceville refinery.
May 1936 – “New TEXACO Motor Oil” (also produced with the solvent-dewaxing/furfural solvent-extraction process but with a totally different and less-expensive formulation than that of HAVOLINE) is introduced.
1938 – “HAVOLINE – DISTILLED AND INSULATED” is introduced.
October 1938 – “TEXACO Sky Chief Gasoline” is introduced (replacing “FIRE-CHIEF Ethyl”).
1 November 1941 – The Texas Company (California) is instructed to transfer all assets to The Texas Company (Delaware) and is then dissolved. The Texas Corporation “merges itself into” The Texas Company (Delaware). The Texas Company (Delaware) — hereafter referred to simply as “The Texas Company” — becomes the “parent company”.
15 March 1943 – INDIAN REFINING COMPANY’s stockholders transfer all of the company’s property and assets to The Texas Company in exchange for shares of that company’s stock. The Texas Company discontinues “INDIAN” gasoline and all other use in trade of the INDIAN name.
24 April 1943 – An agreement is implemented under which The Texas Company (partially by what amounts to cash purchase but, primarily, through exchange of shares) secures all INDIAN REFINING COMPANY stock, which is then cancelled. (INDIAN REFINING COMPANY, INCORPORATED is thus liquidated and is placed in “inactive corporation” status by the State of Maine (under whose laws it was incorporated) 31 December 1943.)
30 April 1943 – The Texas Company creates a second “Indian Refining Company”, which it incorporates under the laws of the State of Delaware – a “shell” company which it lists as an inactive subsidiary.
1946 – “New and Improved HAVOLINE” is introduced.
1950 – “Custom-Made HAVOLINE” is introduced.
Early 1950’s Lubricants production at the Lawrenceville refinery is discontinued; the lubricants production facility is dismantled and portions of that area of the property are disposed of.
1953 – “Advanced Custom-Made HAVOLINE” is introduced.
1955 – “Advanced Custom-Made HAVOLINE Special 10W-30” is introduced.
26 August 1958 – INDIAN REFINING COMPANY, INCORPORATED is officially dissolved by the State of Maine.
1 May 1959 – The Texas Company becomes Texaco Inc.
1962 – New HAVOLINE cans are introduced. The “TEXACO” trademark replaces the INDIAN REFINING COMPANY-era red-white-and-blue “ball” in a totally re-designed “HAVOLINE” logo.
1980 – For numerous reasons (among them the expense of needed technological upgrades), the prospects for the Lawrenceville refinery’s future profitability have eroded significantly. Unable to establish what might be a viable alternative means of supplying product to the area, Texaco Inc. makes the decision to withdraw from the retail gasoline market in that portion of the upper Midwest traditionally serviced by Lawrenceville.
1982 – The marking of all 55-gallon TEXACO drums becomes black with a red band. TEXACO oil drums had, historically, been gray with a green band with two exceptions. Drums of multi-grade (SAE 10W-30 and 10W-40) HAVOLINE Motor Oil were painted dark blue with a gold band and “head”. Those of “straight-grade” HAVOLINE were painted dark blue with a white band and head – Texaco Inc.’s last remaining use of The Havemeyer Oil Company’s original colors.
March 1985 – The diminution of reasonably-accessible sources of suitable crude, the ever- increasing costs of compliance with governmental regulations, and other business considerations combine to make continued operation of the Lawrenceville refinery economically unfeasible. Texaco Refining and Marketing Inc. (a recently-formed subsidiary of Texaco Inc.) completes the withdrawal from the retail and wholesale motor fuels market in a contiguous area spanning Illinois, Indiana, Kentucky, and Wisconsin. The Lawrenceville refinery is closed.
_______________________
Recommended Reading:The Texaco Story: The First Fifty Years, 1902-1952(2012). Your Amazon purchase benefits the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.
Citation Information – Article Title: “Histories of Indian Refining, Havoline, and Texaco.” Author: James Hinds. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/oil-almanac/histories-of-indian-refining-havoline-and-texaco Last Updated: August 19, 2024. Original Published Date: June 21, 2023.
Oil boom 1920s lease auctions earned the Osage millions.
By the 1920s, Oklahoma’s petroleum exploration leases auctioned in the shade of a “Million Dollar Elm” brought prosperity to the Osage Nation. Production from Osage County alone launched the careers of Frank Phillips, J. Paul Getty, Bill Skelly, E.W. Marland, Harry Sinclair — and Clark Gable.
A circa 1920s painting depicts one of the many lease auctions that took place under the “Million Dollar Elm” next to the Osage Nation tribal council house in Pawhuska, Oklahoma.
In the spring of 2003, the Osage nation opened a “Million Dollar Elm” casino a few miles from its council house at Pawhuska, Oklahoma. The name came straight from Osage reservation petroleum history. Multi-million dollar lease auctions took place in the shade of a giant elm next to the council house.
Osage County, at more 2,250 square miles, is the largest county in Oklahoma – larger than Delaware or Rhode Island. On the grounds atop Agency Hill between the county courthouse and the Osage tribal council house, today stands a symbolic elm where auctions regularly took place on hot summer afternoons.
Soon after Oklahoma statehood, more Osage discoveries brought thousands to Bartlesville, Hominy, Fairfax, Grainola and Burbank. All the oilfields produced a high-quality, easily refined oil. First drilled in 1920, the Burbank field and several others soon became one of the richest in Oklahoma.
Colonel Elmer Ellsworth Walters, official auctioneer of the Osage Nation (seen here on June 14, 1921), sold millions of dollars of oil leases in the shade of an elm tree. Photo courtesy Bartlesville Area History Museum.
At its peak, the Burbank oilfield produced more than 70,000 barrels a day from more than 1,800 wells. Phillips Petroleum made a fortune there. Other petroleum companies got their start in Osage oilfields, including Conoco (originally Marland Oil), Skelly Oil, Carter Oil (later incorporated into Standard Oil), and Gypsy Oil Company (later Gulf).
Traces of oil had long been noted in the area, including slicks on creeks and oil seeps. The southern end of the Flint Hills, which ranges down from Kansas, has rocks 298 million years old, according to Jenk Jones Jr. of the Tallgrass Prairie National Preserve in Cottonwood Falls, Kansas.
The Indian Territory Illuminating Oil Company made the first drilling deal with the Osage Tribe, he noted in 1991. The oil company received rights to all drilling in the Osage Nation for 10 years, beginning in 1896. The next year the territory’s first commercial producer was completed, the Nellie Johnstone No. 1 well, in what is now a park in Bartlesville.
All of Osage County was open for bidding after 1916 – just in time for the greatest years of the Osage boom, triggered by demands of World War I and the postwar growth in automobiles.
“To get a sense of how the oil business exploded in the Osage, there were about 6,000 barrels produced in 1900, more than 11 million in 1914. The Osage boom and a vast leap in the number of automobiles coincided remarkably well,” Jones explained in a Tulsa World article.
Colonel Walters on March 2, 1922, sold a million-dollar 160-acre oil lease for the Osage Nation. Walters auctioned another 160-acre Osage lease for $2 million in 1924. Detail of photo in Oil! Titan of the Southwest by Carl Coke Rister, 1949.
During the height of the drilling boom from 1919 to 1928 northwest of Tulsa, more than $202 million was paid to the tribe in oil and natural gas royalties, bonuses, interest and land rentals.
“The Osage fields were an oilman’s dream,” reported Jones. “The oil was a high-grade, with a good conversion to gasoline ratio. It was easily refined, with a very high percentage of kerosene. It was free of sulfur and asphalt.”
According to Corey Bone of the Oklahoma Historical Society, the profitable auctions of Osage mineral rights were based on “headrights” from a 1906 tribal population count.
“Unlike other landholders, the Osage were able to retain collective ownership of subsurface mineral rights, rather than having to accept allotments to individual owners,” Bone explained. “Instead, tribal members received ‘headrights’ that assured them an equal share of mineral rights sales equivalent to income from 658 acres.”
She added that a headright could not be sold, but an individual could sell his or her surface rights. “An average Osage family of a husband, wife, and three children would receive more than $65,000 a year in 1926,” Bone noted.
By 1939, Osage individuals had received more than $100 million in royalties and bonuses.
Million Dollar Auctioneer
Great petroleum wealth for the Osage people brought criminal conspiracies — and the murder of Osage for headrights to their land. The murders eventually led to an FBI investigation, convictions — and changes to the law in 1925.
When the “Reign of Terror” news finally made national headlines, it obscured the the good work of a longtime friend and respected auctioneer of the tribe’s leases. The Osage would erect a statue to their auctioneer, Colonel Elmer Ellsworth Walters, in his hometown of Skedee.
Born in at the end of the Civil War in 1865, his parents had named him after the first Union martyr of the Civil War, Col. Elmer Ellsworth of the 11th New York Volunteers. His friendship helped earn the Osage millions of dollars (learn about Walters, his leases auctions, the dark history of Osage headrights in Million Dollar Auctioneer.
Map of Osage County, Oklahoma, townships courtesy OKGenWeb.
As the auctioneer for the Osage, Walters worked for about $10 a day, beginning in 1912. Later, surrounded by bidding oil company owners E.W. Marland, William Skelly and the Phillips brothers, he regularly set new lease sales records.
Walters would become greatly admired among the Osage of Pawhuska. “He knew the oilmen intimately and was an expert at getting them to raise bids,” Jones explained. “So subtle were their signals that L.E. Phillips reportedly ‘bid’ $100,000 for a lease by brushing a fly away from his nose.”
The elm’s name was not given by tribal leaders – but by reporters and magazine writers who were dramatizing the events when founders of the world’s greatest oil companies came in person to bid. It truly earned its name when 18 tracts brought bonuses of $1 million on a single day, November 11, 1912.
Auctions by Walters would earn about $157 million for the Osage tribe by 1928, two years after the Osage Nation dedicated a statue to their auctioneer, Colonel Elmer Ellsworth Walters, in his hometown of Skedee. The statue depicts the auctioneer shaking hands with his friend Osage Chief Bacon Rind.
Osage Oil Boom
A large cast of national characters are linked to petroleum exploration and production on the Osage Nation. Future president Herbert Hoover, an orphan, spent summer months in Pawhuska after his uncle Major Lahan J. Miles was appointed agent to the Osages in 1878.
Visitors to Barnsdall, Oklahoma, can view a registered petroleum landmark in the middle of Main Street that is considered to be the only such oil well in the world. Photo by Bruce Wells.
Southeast of Pawhuska, the town Pershing was an oil boom town named for Gen. John J. Pershing, leader of U.S. forces in Europe during World War I.
Tom Mix, future silent film star, was a town marshal in Dewey just east of the Osage County border. The Wild West show of the 101 Ranch in Kay County west of the Osage gave him the boost that sent him to Hollywood.
Clark Gable worked as a roustabout in the Osage oilfields, especially around Barnsdall and Pershing, before heading to California for stardom (see Boom Town Burkburnett).
Memories of what took place beneath the Osage Nation elm did not fade after the original tree died in the 1980s. The latest elm, dedicated during a September 15, 2006, ceremony, grows new roots into the historic site. Visitors gamble at six Osage Nation “Million Dollar Elm” casinos.
In 2011, Oklahoma City-based Chaparral Energy reportedly began working on methods to increase production from Osage oilfields that could bring $11 billion to Osage County and provide the Osage Nation with $1.2 billion in royalty payments over the next 30 years.
Editor’s Note: Special thanks to Jenk Jones Jr. and his March 1, 2003, “Osage County History” docent orientation presentation, Tallgrass Prairie National Preserve, Cottonwood Falls, Kansas.
Citation Information – Article Title: “Million Dollar Elm,” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/million-dollar-elm. Last Updated: April 20, 2025. Original Published Date: March 24, 2014.
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