by Bruce Wells | Jan 6, 2025 | This Week in Petroleum History
January 7, 1864 – Oilfield Discovery at Pithole Creek –
The once famous Pithole Creek
oilfield was discovered in Pennsylvania with the United States Petroleum Company’s well reportedly located using a witch-hazel dowser. The discovery well, which initially produced 250 barrels of oil a day, brought a “black gold” rush as boom town Pithole made headlines five years after the first U.S. oil well drilled at nearby Titusville.
Boom town Pithole City’s history is preserved at Pennsylvania’s Oil Creek State Park. Photo by Bruce Wells.
Adding to the boom were Civil War veterans eager to invest in the new industry. Newspaper stories added to the oil fever — as did the Legend of “Coal Oil Johnny.” Tourists today visit Oil Creek State Park and its education center on the grassy expanse that was once Pithole.
January 7, 1905 – Humble Oilfield Discovery rivals Spindletop
C.E. Barrett discovered the Humble oilfield in Harris County, Texas, with his Beatty No. 2 well, which brought another Texas drilling boom four years after Spindletop launched the modern petroleum industry. Barrett’s well produced 8,500 barrels of oil per day from a depth of 1,012 feet.
The population of Humble jumped from 700 to 20,000 within months as production reached almost 16 million barrels of oil, the largest in Texas at the time. The field directly led to the 1911 founding of the Humble Oil Company by a group that included Ross Sterling, a future governor of Texas.
An embossed postcard circa 1905 from the Postal Card & Novelty Company, courtesy the University of Houston Digital Library.
“Production from several strata here exceeded the total for fabulous Spindletop by 1946,” notes a local historic marker. “Known as the greatest salt dome field, Humble still produces and the town for which it was named continues to thrive.” Another giant oilfield discovery in 1903 at nearby Sour Lake helped establish the Texaco Company.
Humble Oil, renamed Humble Oil and Refining Company in 1917, consolidated operations with Standard Oil of New Jersey two years later, eventually leading to ExxonMobil.
January 7, 1957 – Michigan Dairy Farmer finds Giant Oilfield
After two years of drilling, a wildcat well on Ferne Houseknecht’s Michigan dairy farm discovered the state’s largest oilfield. The 3,576-foot-deep well produced from the Black River formation of the Trenton zone.
After 20 months of on-again, off-again drilling, Ferne Houseknecht’s well revealed a giant oilfield in the southern Michigan basin.
The Houseknecht No. 1 discovery well at Rattlesnake Gulch revealed a producing region 29 miles long and more than one mile wide. It prompted a drilling boom that led to production of 150 million barrels of oil and 250 billion cubic feet of natural gas from the giant Albion-Scipio field in the southern Michigan basin.
“The story of the discovery well of Michigan’s only ‘giant’ oilfield, using the worldwide definition of having produced more than 100 million barrels of oil from a single contiguous reservoir, is the stuff of dreams,” noted Michigan historian Jack Westbrook
in 2011.
Learn more in Michigan’s “Golden Gulch” of Oil.
January 7, 1913 – “Cracking” Patent improves Refining
William Burton of the Standard Oil Company’s Whiting, Indiana, refinery received a patent for a process that doubled the amount of gasoline produced from each barrel of oil refined. Burton’s invention came as gasoline demand was rapidly growing with the popularity of automobiles. His thermal cracking concept was an important refining advancement, although the process would be superseded by catalytic cracking in 1937.
January 8, 1903 – Sour Lake discovery leads to Texaco
Founded a year earlier in Beaumont, Texas, the Texas Company struck oil with its Fee No. 3 well, which flowed at 5,000 barrels a day, securing the company’s success in petroleum exploration, production, transportation and refining.
A monument marks the site where the Fee No. 3 well flowed at 5,000 barrels of oil a day in 1903, helping the Texas Company become Texaco.
“After gambling its future on the site’s drilling rights, the discovery during a heavy downpour near Sour Lake’s mineral springs, turned the company into a major oil producer overnight, validating the risk-taking insight of company co-founder J.S. Cullinan and the ability of driller Walter Sharp,” explained a Texaco historian. The Sour Lake field — and wells drilled in the Humble oilfield two years later — led to the Texas Company becoming Texaco (acquired by Chevron in 2001).
Learn more in Sour Lake produces Texaco.
January 10, 1870 – Rockefeller incorporates Standard Oil Company
John D. Rockefeller and five partners incorporated the Standard Oil Company in Cleveland, Ohio. The new oil and refining venture immediately focused on efficiency and growth. Instead of buying barrels, the company bought tracts of oak timber, hauled the dried timber to Cleveland on its own wagons, and built its own 42-gallon oil barrels.
A stock certificate issued in 1878 for Standard Oil Company, which would become Standard Oil of Ohio (Sohio) following the 1911 breakup of John D. Rockefeller’s oil monopolies.
Standard Oil’s cost per wooden barrel dropped from $3 to less than $1.50 as the company improved refining methods to extract more kerosene per barrel of oil (there was no market for gasoline). By purchasing properties through subsidiaries, dominating railroads and using local price-cutting, Standard Oil captured 90 percent of America’s refining capacity.
January 10, 1901 – Spindletop launches Modern Petroleum Industry
The modern U.S. oil and natural gas industry began 123 years ago on a small hill in southeastern Texas when a wildcat well erupted near Beaumont. The Spindletop field, which yielded 3.59 million barrels of oil by the end of 1901, would produce more oil in one day than all the rest of the world’s oilfields combined.
The Spindletop-Gladys City Boomtown Museum in Beaumont, Texas, opened in 1976 to educate visitors about the importance of the 1901 “Lucas Gusher.”
The “Lucas Gusher” and other nearby discoveries changed American transportation by providing abundant oil for cheap gasoline. The drilling boom would bring hope to a region devastated just a few months earlier by the Galveston Hurricane, still the deadliest in U.S. history. Petroleum production from the well’s geologic salt dome had been predicted by Patillo Higgins, a self-taught geologist and Sunday school teacher.
Learn more in Spindletop launches Modern Petroleum Industry.
January 10, 1919 – Elk Hills Oilfield discovered in California
Standard Oil of California discovered the Elk Hills field in Kern County, and the San Joaquin Valley soon ranked among the most productive oilfields in the country. It became embroiled in the 1920s Teapot Dome lease scandals and yielded its billionth barrel of oil in 1992. Visit the petroleum exhibits of the Kern County Museum in Bakersfield and at the West Kern Oil Museum in Taft.
January 10, 1921 – Oil Boom arrives in Arkansas
“Suddenly, with a deafening roar, a thick black column of gas and oil and water shot out of the well,” noted one observer in 1921 when the Busey-Armstrong No. 1 well struck oil near El Dorado, Arkansas. H.L. Hunt would soon arrive from Texas (with $50 he had borrowed) and join lease traders and speculators at the Garrett Hotel — where fortunes were soon made and lost. “Union County’s dream of oil had come true,” reported the local paper. The giant Arkansas field would lead U.S. oil output in 1925 with production reaching 70 million barrels.
Learn more in First Arkansas Oil Wells.
January 11, 1926 – “Ace” Borger discovers Oil in North Texas
Thousands rushed to the Texas Panhandle seeking oil riches after the Dixon Creek Oil and Refining Company completed its Smith No. 1 well, which flowed at 10,000 barrels a day in southern Hutchinson County. A.P. “Ace” Borger of Tulsa, Oklahoma, had leased a 240-acre tract. By September, the Borger oilfield was producing more than 165,000 barrels of oil a day.
A downtown museum exhibits Borger’s oil heritage. Photo by Bruce Wells.
After establishing his Borger Townsite Company, Borger laid out streets and sold lots for the town, which grew to 15,000 residents in 90 days. When the oilfield produced large amounts of natural gas, the town named its minor league baseball team the Borger Gassers. The team left the league in 1955 (owners blamed air-conditioning and television for reducing attendance).
Dedicated in 1977, the Hutchinson County Boom Town Museum in Borger celebrates “Oil Boom Heritage” every March.
January 12, 1904 – Henry Ford sets Speed Record
Seeking to prove his cars were built better than most, Henry Ford set a world land speed record on a frozen Michigan lake. At the time his Ford Motor Company was struggling to get financial backing for its first car, the Model T. It was just four years after America’s first auto auto show.
The Ford No. 999 used an 18.8 liter inline four-cylinder engine to produce up to 100 hp. Image courtesy Henry Ford Museum.
Ford drove his No. 999 Ford Arrow across Lake St. Clair, which separates Michigan and Ontario, Canada, at a top speed of 91.37 mph. The frozen lake “played an important role in automobile testing in the early part of the century,” explained Mark DIll in “Racing on Lake St. Clair” in 2009. “Roads were atrocious and there were no speedways.”
Learn about a 1973 natural gas-powered world land speed record in Blue Flame Natural Gas Rocket Car.
January 12, 1926 – Texans patent Ram-Type Blowout Preventer
Seeking to end dangerous and wasteful oil gushers, James Abercrombie and Harry Cameron patented a hydraulic ram-type blowout preventer (BOP). About four years earlier, Abercrombie had sketched out the design on the sawdust floor of Cameron’s machine shop in Humble, Texas. Petroleum companies embraced the new technology, which would be improved in the 1930s.
James Abercrombie’s design used hydrostatic pistons to close on the drill stem. His improved blowout preventer set a new standard for safe drilling
First used during the Oklahoma City oilfield boom, the BOP helped control production of the highly pressurized Wilcox sandstone (see World-Famous “Wild Mary Sudik”). The American Society of Mechanical Engineers recognized the Cameron Ram-Type Blowout Preventer as an “Historic Mechanical Engineering Landmark” in 2003.
Learn more in Ending Oil Gushers – BOP.
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Recommended Reading: Myth, Legend, Reality: Edwin Laurentine Drake and the Early Oil Industry (2009); Humble, Images of America
(2013); Michigan Natural Resources Trust Fund 1976-2011: A 35-year Michigan Oil and Gas Industry Investment Heritage in Michigan’s Public Recreation Future
(2011); Handbook of Petroleum Refining Processes
(2016); Black Gold in California: The Story of California Petroleum Industry (2016); Titan: The Life of John D. Rockefeller, Sr.
(2004); Giant Under the Hill: A History of the Spindletop Oil Discovery at Beaumont, Texas, in 1901
(2008); Early Louisiana and Arkansas Oil: A Photographic History, 1901-1946
(1982); I Invented the Modern Age: The Rise of Henry Ford
(2014); Drilling Technology in Nontechnical Language
(2012). 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. Copyright © 2025 Bruce A. Wells. All rights reserved.
by Bruce Wells | Jan 4, 2025 | Petroleum Pioneers
As drillers and speculators rushed to Spindletop Hill, the Texas Company was organized in 1902.
A series of oil and natural gas discoveries at Sour Lake, Texas — near the famous 1901 gusher at Beaumont — helped launch the major oil company Texaco.
Originally known as Sour Lake Springs because of sulfurous spring water popular for its healing properties, a series of oil discoveries brought wealth and new petroleum companies to Hardin County in southeastern Texas.
“A forest of oil well derricks at Sour Lake, Texas,” is from the W.D. Hornaday Collection, Texas State Library and Archives Commission, Austin. Oil discoveries at the resort town northwest of the world-famous Spindletop gusher of 1901 would transform the Texas Company.
As the science of petroleum exploration and production evolved, some geologists predicted oil was trapped at a salt dome at Sour Lake similar to that of Beaumont’s Spindletop Hill formation, which was producing massive amounts of oil.
According to Charles Warner in Texas Oil & Gas Since 1543, in November 1901 an exploratory well found “hot salt water impregnated with sulfur between 800 and 850 feet…and four oil sands about 10 feet thick at a depth of approximately 1,040 feet.”
Warner noted that the Sour Lake Springs field’s discovery well came four months later when a second attempt by the Great Western Company drilled “north of the old hotel building” in the vicinity of earlier shallow wells.
“This well secured gusher production at a depth of approximately 683 feet on March 7, 1902,” Warner reported. “The well penetrated 40 feet of oil sand. The flow of oil was accompanied by a considerable amount of loose sand, and it was necessary to close the well in from time to time and bail out the sand, after which the well would respond with excellent flows.”
A monument marks the site where in 1903 the Fee No. 3 well flowed at 5,000 barrels of oil a day, launching the Texas Company into becoming Texaco.
As more discoveries followed, Joseph “Buckskin Joe” Cullinan and Arnold Schlaet were among those who rushed to the area from their offices in Beaumont.
The Texas Company
The most significant company that started during the Spindletop oil boom was The Texas Company, according to historian Elton Gish.
“Cullinan worked in the Pennsylvania oil industry and later went to Corsicana, Texas, about 1898 when oil was first discovered in that district where he became the most prosperous operator in the field,” reported Gish in his “History of the Texas Company and Port Arthur Works Refinery.”
Cullinan formed the Petroleum Iron Works, building oil storage tanks in the Beaumont area — where he was introduced to Schlaet. “When the Spindletop boom came in January 1901, Mr. Cullinan decided to visit Beaumont,” Gish noted. Schlaet managed the oil business of two brothers, New York leather merchants.
Named after its New York City telegraph address, the Texaco brand became official in 1959. Postcard of a Texaco service station next to a cafe in Kingman, Arizona.
“Schlaet’s field superintendent, Charles Miller, traveled to Beaumont in 1901 to witness the Spindletop activity and met with Cullinan, whom he knew from the oil business in Pennsylvania. He liked Cullinan’s plans and asked Schlaet to join them in Beaumont.”
According to Texaco, Cullinan and Schlaet formed the Texas Company on April 7, 1902, by absorbing the Texas Fuel Company and inheriting its office in Beaumont. Texas Fuel had organized just one year earlier to purchase Spindletop oil, develop storage and transportation networks, and sell the oil to northern refineries.
By November 1902, the new Texas Company was establishing a new refinery in Port Arthur as well as 20 storage tanks, building its first marine vessel, and equipping an oil terminal to serve sugar plantations along the Mississippi River.
Fee No. 3 Discovery
The Texas Company struck oil at Sour Lake Springs in January 1903, “after gambling its future on the site’s drilling rights,” the company explained. “The discovery, during a heavy downpour near Sour Lake’s mineral springs, turned the company into a major oil producer overnight, validating the risk-taking insight of company co-founder J.S. Cullinan and the ability of driller Walter Sharp.”
A Texaco station was among the 2012 indoor exhibits featured at the National Route 66 Museum in Elk City, Oklahoma. Photo by Bruce Wells.
Their 1903 Hardin County discovery at Sour Lake Springs — the Fee No. 3 well — flowed at 5,000 barrels a day, securing the Texas Company’s success in petroleum exploration, production, transportation and refining. Sharp founded the Sharp-Hughes Tool Company in 1908 with Howard Hughes Sr.
High oil production levels from the Sour Lake field and other successful wells in the Humble oilfield (1905), secured the company’s financial base, according to L. W. Kemp and Cherie Voris in Handbook of Texas Online.
“In 1905 the Texas Company linked these two fields by pipelines to Port Arthur, ninety miles away, and built its first refinery there. That same year the company acquired an asphalt refinery at nearby Port Neches,” the authors noted.
“In 1908 the company completed the ambitious venture of a pipeline from the Glenn Pool, in the Indian Territory (now Oklahoma), to its Southeast Texas refineries,” added Kemp and Voris. “As early as 1905 the Texas Company had established marketing facilities not only throughout the United States, but also in Belgium, Luxembourg, and Panama.”
The Texas Company registered “Texaco” as a trademark in 1909.
The telegraph address for the company’s New York office is “Texaco” — a name soon applied to its products. The company registered its first trademark, the original red star with a green capital letter “T” superimposed on it in 1909. The letter remained an essential component of the logo for decades.
The Texas Corporation in August 1926 incorporated in Delaware (from Texas) and by an exchange of shares acquired outstanding stock of The Texas Company (Texas), which was dissolved the next year.
The new corporation became the parent company of numerous “Texas Company” — Texaco — entities and other subsidiaries, according to Jim Hinds of Columbus, Indiana (see Histories of Indian Refining, Havoline, and Texaco). By 1928, Texaco operated more than 4,000 gasoline stations in 48 states. It already was a major oil company when it officially renamed itself Texaco in 1959.
1987 Bankruptcy
Texaco lost a 1985 court battle following its purchase of Getty Oil Company. In February 1987 a Texas court upheld the decision against Texaco for having initiated an illegal takeover of Getty Oil after Pennzoil had made a bid for the company. Texaco filed for bankruptcy in April 1987.
The companies settled their historic $10.3 billion legal battle for $3 billion when Pennzoil agreed to drop its demand for interest. The Los Angeles Times reported the compromise was vital for Texaco emerging from bankruptcy, a haven sought to stop Pennzoil from enforcing the largest court judgment ever awarded at the time.
On October 9, 2001, Chevron and Texaco agreed to a merger that created ChevronTexaco — renamed Chevron in 2005. Although the Sour Lake Springs oil boom was surpassed by other Texas discoveries, it has remained the birthplace of Texaco.
Learn more about southeastern Texas petroleum history in Spindletop creates Modern Petroleum Industry and Prophet of Spindletop.
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Recommended Reading: The Texaco Story, The First Fifty Years 1902 – 1952 by Texas Company (1952). Texaco’s Port Arthur Works, A Legacy of Spindletop and Sour Lake (2003); Giant Under the Hill: A History of the Spindletop Oil Discovery
(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. Copyright © 2025 Bruce A. Wells. All rights reserved.
Citation Information – Article Title: “Sour Lake produces Texaco.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/sour-lake-produces-texaco. Last Updated: January 3, 2025. Original Published Date: April 5, 2014.
by Bruce Wells | Dec 4, 2024 | Petroleum Pioneers
After decades of drilling dry holes, a New Mexico wildcatter reveals rich deposits of high-grade uranium ore.
Stella Dysart spent almost 30 years unsuccessfully searching for oil in New Mexico. In 1955, a radioactive uranium sample from one of her “dusters” made her a very wealthy woman.
In the end, it was the uranium — not petroleum — that made Dysart her fortune. The sometimes desperate promoter of New Mexico oil drilling ventures for more than 30 years, she once served time for fraud. But in 1955, Mrs. Dysart learned she owned the world’s richest deposit of high-grade uranium ore.
LIFE magazine featured Stella Dysart in front of a drilling rig in 1955, soon after she made a fortune from uranium after three decades of failure in petroleum drilling ventures.
Born in 1878 in Slater, Missouri, Dysart moved to New Mexico, where she got into the petroleum and real estate business in 1923. She ultimately acquired a reported 150,000 acres in the remote Ambrosia Lake area 100 miles west of Albuquerque, on the southern edge of the oil-rich San Juan Basin.
Dysart established the New Mexico Oil Properties Association and the Dysart Oil Company. The ventures and other investment schemes would leave her broke, according to John Masters and Paul Grescoe in their 2002 book, Secret Riches: Adventures of an Unreformed Oilman.
The authors describe Dysart as a woman who drilled dry holes, peddled worthless parcels of land to thousands of dirt-poor investors, and went to jail for one of her crooked deals.
Dysart subdivided her properties and subdivided again — selling one-eighth acre leases and oil royalties as small as one-six thousandth to investors. She drilled nothing but dry holes for years. Then it got worse,
Before her good fortune from uranium, Stella Dysart served 15 months in prison for unauthorized selling of New Mexico oil leases. In 1941, she had promoted her Dysart No. 1 Federal well, above, which was never completed.
A 1937 Workmen’s Compensation Act judgment against Dysart’s New Mexico Oil Properties Association bankrupted the company, compelling sale of its equipment, “sold as it now lies on the ground near Ambrosia Lake.”
Two years later, it got worse again. Dysart and five Dysart Oil Company co-defendants were charged with 60 counts of conspiracy, grand theft and violation of the corporate securities (act) in 1939. All were convicted, and all did time. Dysart served 15 months in the county jail before being released on probation in March 1941.
Richest Uranium Deposit
By 1952, 74-year-old Dysart was $25,000 in debt when she met uranium prospector Louis Lothman, a young Texan just two years out of college with a geology degree.
When Lothman examined cuttings from a Dysart dry hole in McKinley County in 1955, he got impressive Geiger counter readings. The drilling of several more test wells confirmed the results. Dysart owned the world’s richest deposit of high-grade uranium ore.
Uranium production in the San Juan Basin, 1948-1975 courtesy New Mexico Geological Survey.
The uranium discovery launched an intensive exploration effort that led to development of the multi-million-ton deposits in the Ambrosia Lake area, according to William L. Chenoweth of the U.S. Energy Research and Development Administration.
“The San Juan Basin of northwest New Mexico has been the source of more uranium production than any other area in the United States,” he noted in a New Mexico Geological Survey 1977 report, “Uranium in the San Juan Basin.”
Dysart was 78 years old when the December 10, 1955, LIFE magazine featured her picture, captioned: “Wealthy landowner, Mrs. Stella Dysart, stands before abandoned oil rig which she set up on her property in a long vain search for oil. Now uranium is being mined there and Mrs. Dysart, swathed in mink, gets a plump royalty.”
Praised for her success, and memories of fraudulent petroleum deals long forgotten, Dysart died in 1966 in Albuquerque at age 88. As Secret Riches author John Masters explained, “there must be a little more to her story, but as someone said of Truth — ‘it lies hidden in a crooked well.’”
More New Mexico petroleum history can be found in Farmington, including the exhibit “From Dinosaurs to Drill Bits” at the Farmington Museum. Learn about the giant Hobbs oilfield of the late 1920s in New Mexico Oil Discovery.
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Recommended Reading: Stella Dysart of Ambrosia Lake: Courage, Fortitude and Uranium in New Mexico
(1959); Secret Riches: Adventures of an Unreformed Oilman (2004). 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. Copyright © 2024 Bruce A. Wells. All rights reserved.
Citation Information – Article Title: Legend of “Mrs. Dysart’s Uranium Well.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/uranium. Last Updated: December 5, 2024. Original Published Date: April 29, 2013.
