by Bruce Wells | Jul 20, 2024 | Petroleum Pioneers
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.
The Osage would award erect a statue to their auctioneer, Colonel Elmer Ellsworth Walters, in his hometown of Skedee. In 1926, a statue of of the auctioneer shaking hands with Osage Chief Bacon Rind was dedicated in Walters’ nearby hometown of Skedee.
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.

Oil patch historians visiting Barnsdall, Oklahoma, can view a registered petroleum landmark in the middle of Main Street. 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 Hollywood.

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.
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Recommended Reading: The Underground Reservation: Osage Oil
(1985); Oil in Oklahoma
(1976); Killers of the Flower Moon (2018). 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 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. © 2025 Bruce A. Wells. All rights reserved.
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: July 10, 2025. Original Published Date: March 24, 2014.
by Bruce Wells | Jun 20, 2024 | Petroleum Pioneers
Pennsylvania wildcatters discovered an oilfield in 1901 near Tulsa in the Creek Nation, Indian Territory.
In 1901, six years before Oklahoma statehood, discovery of the Red Fork oilfield south of Tulsa began the town’s journey to becoming “Oil Capital of the World.” Discovery of the giant Glenn Pool in 1905 helped.
Attracted to Indian Territory following an 1897 discovery at Bartlesville (see First Oklahoma Oil Well) two experienced drillers from the Pennsylvania fields found oil in the Creek Indian Nation on June 25, 1901. They drilled using steam boilers powering cable-tool derricks, the technology used to drill the first U.S. oil well in 1859 along Oil Creek in Titusville, Pennsylvania.

Dedicated during the 2007 Oklahoma centennial, a circa 1950s derrick commemorates the June 25, 1901, Red Fork oilfield discovery well. Photo courtesy Route 66 Historic Village.
After leasing thousands of acres in the Creek Nation, John S. Wick and Jesse A. Heydrick spudded their remote wildcat well near the village of Red Fork, across the Arkansas River from Tulsa. The attempt to find oil was not easy for the Pennsylvanians.
At the time, “Oklahoma Indian lands were in the process of being transferred from communal tribal ownership to individual tribal member holdings,” noted Bobby D. Weaver in a 2010 article for the Oklahoma Historical Society.

“This process, which made legal access to Indian property very uncertain, kept most oilmen away from areas under Indian control,” Weaver added. The well was almost never drilled when the St. Louis and San Francisco Railway station agent at Red Fork, “refused to accept a draft on their Pennsylvania backers to release their drilling equipment.”
Creek Land lease
The exploratory well was saved by a loan from two local doctors, John C. W. Bland and Fred S. Clinton. Drilling began at Red Fork on the tribal allotment of Sue A. Bland, a Creek citizen and wife of Dr. Bland.

Oil and natural gas exploration, production and service companies rushed to open offices in Tulsa following the 1901 oilfield discovery — and another in 1905.
Although the Sue A. Bland No. 1 well erupted an oil geyser high into the air, the discovery soon settled into production of just 10 barrels of oil a day from a depth of 537 feet. Despite the low production, the Oklahoma Territory well attracted a lot of national attention, drawing large numbers of exploration companies to the Tulsa area.
The Tulsa Democrat newspaper exclaimed, “Geyser of Oil Spouts at Red Fork” and “Oil Well Gusher Fifteen Feet High.” Within a week, Red Fork – once a quiet town of 75 people – was overrun by people clamoring for leases.

Tulsa County’s 1901 oilfield discovery was followed in 1905 by a well drilled deeper than the Red Fork production sands revealed the far bigger Glenn Pool field (above in 1909). Photo courtesy Tulsa Historical Society & Museum.
Many of the newcomers settled in Tulsa, which in 1904 constructed its first bridge across the Arkansas River to accommodate wagonloads of oilfield workers and equipment.
“The Red Fork discovery never produced a great amount of oil, with most of the wells being in the fifty-barrel-per-day range, but it did produce excitement and drilling activity,” concluded Weaver.

“The discovery also prompted Tulsa citizens to begin a strong promotional campaign, with the result that by 1904 a much needed bridge had been built across the Arkansas River,” he added. “This gave Tulsa access to the Red Fork Field and beyond and started that community on the road to becoming the predominant oil city in Oklahoma.”
The city’s petroleum industry future was assured in 1905 when a well drilled deeper than the Red Fork production sands revealed a truly massive oilfield. The Glenn Pool’s production far exceeded Tulsa County’s earlier Red Fork discovery.
Learn more in Making Tulsa the Oil Capital.
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Recommended Reading: Tulsa Oil Capital of the World, Images of America
(2004); The Oklahoma Petroleum Industry
(1980); Oil in Oklahoma
(1976). Your Amazon purchase benefits the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.
_______________________
The American Oil & Gas Historical Society (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: “Red Fork Gusher.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/oklahoma-red-fork-oilfield. Last Updated: June 21, 2024. Original Published Date: June 23, 2014.
by Bruce Wells | Jun 14, 2024 | Petroleum Pioneers
Cemetery generated royalty checks to next-of-kin when oil was drawn from beneath family plots.
In the summer of 1921, the Signal Hill oil discovery would help make California the source of one-quarter of the world’s entire oil output. Soon known as “Porcupine Hill,” the town’s Long Beach oilfield produced about 260,000 barrels of oil a day by 1923.
The Alamitos No. 1 well, drilled on a remote hilltop south of Los Angeles, erupted a 114-foot column of “black gold” on June 23, 1921. Natural gas pressure was so great, the geyser of oil climbed 114 feet into the air.

Following the June 1921 oil discovery, Signal Hill had so many derricks that many people called it Porcupine Hill. Circa 1930-1945 postcard courtesy Tichnor Brothers Collection, Boston Public Library, Digital Commonwealth.
The oilfield discovery well, which produced almost 600 barrels a day, would eventually produce 700,000 barrels of oil. Signal Hill incorporated three years after its Alamitos discovery well made headlines.

In 1923, Signal Hill’s petroleum field produced more than 68 million barrels of oil. The community of Signal Hill later became one of the first U.S. cities to be surrounded by another city, Long Beach.

Signal Hill, a growing residential area prior to the 1921 discovery of the Long Beach oilfield, would have so many derricks people called it Porcupine Hill. “Today you can see wonderful commemorative art displays of this era throughout the lush parks and walkways of Signal Hill,” noted a local newspaper.
By the 2000s, more than one billion barrels of oil were pumped from the Long Beach oilfield since the original 1921 strike. “Signal Hill is the scene of feverish activity, of an endless caravan of automobiles coming and going, of hustle and bustle, of a glow of optimism,” reported California Oil World.

Signal Hill circa 1930 — at the corner of 1st Street and Belmont Street. Photo courtesy of Los Angeles Museum of Natural History.
“Derricks are being erected as fast as timber reaches the ground,” the magazine adds. “New companies are coming in overnight. Every available piece of acreage on and about Signal Hill is being signed up.”

The Signal Hill oil discovery helped make California the source of one-quarter of the world’s entire oil output. “Porcupine Hill” and the Long Beach field produced 260,000 barrels of oil a day by 1923.
Within a year, Signal Hill — before and after a residential area — will have 108 wells, producing 14,000 barrels of oil a day. There were so many derricks, people starting calling it Porcupine Hill. “Derricks are so close that on Willow Street, Sunnyside Cemetery graves generated royalty checks to next-of-kin when oil was drawn from beneath family plots,” noted one historian.

Derricks were so close to one cemetery that graves “generated royalty checks to next-of-kin when oil was drawn from beneath family plots.” By 1923, production would reach 259,000 barrels per day from nearly 300 wells. Photo is part of a panorama in the Library of Congress.
Dave Summers explained in his 2011 article, “The Oil Beneath California,” that when oilfields around Los Angeles began to develop, “Californian production became a significant player on the national stage.” The OilPrice.com article continued:
By 1923 it was producing some 259,000 barrels per day from some 300 wells, in comparison with Huntington Beach, which was then at 113,000 barrels per day and Santa Fe Springs at 32,000 barrels per day… And, in a foreboding of the future problems of over production, this was the first year in a decade that supply exceeded demand.
Shell Oil Geologists
Signal Hill oil potential had drawn wildcatters south of Los Angeles since 1917, but with no success. Two Royal Dutch Shell Oil Company geologists and a driller persevered.

“This was a great exploit and economic risk for the time. Shell Oil Company had just lost $3 million at a failed drilling site in Ventura, five years before,” reported a Long Beach newspaper.

A 1954 photograph of the Alamitos No. 1 well — and the monument dedicated on May 3, 1952, “as a tribute to the petroleum pioneers for their success here…”
Although another “dry hole” would be expensive, Shell geologists Frank Hayes and Alvin Theodore Schwennesen spudded their well in March 1921. Driller O.P. “Happy” Yowells believed oil lay deeper than earlier “dusters” had attempted to reach.
By summer the steam-powered cable tool rig had Yowells close to making oilfield history. On June 23, 1921, at a depth of 3,114 feet, his wildcat well for Shell Oil erupted, revealing a petroleum reserve that extended to nearby Long Beach.
According to the Paleontological Research Institution, Signal Hill became the biggest oil field the already productive Southern California region had ever seen. This made California, “the nation’s number-one producing state, and in 1923, California was the source of one-quarter of the world’s entire output of oil!”
Decades before Signal Hill, another giant southern California oilfield had been discovered in 1892. A struggling prospector drilled into tar seeps he found near present-day Dodger Stadium (see Discovering Los Angeles Oilfields).
Signal Hill Oil Park
Today, Signal Hill’s Discovery Well Park includes a community center to educate the public. Historic photos and descriptions can be found at six viewpoints along the Panorama Promenade. There are producing oil wells throughout the hill — with the historic “Discovery Well, Alamitos Number 1” at the corner of Temple Avenue and East Hill Street.
A monument dedicated on May 3, 1952, serves “as a tribute to the petroleum pioneers for their success here, a success which has, by aiding in the growth and expansion of the petroleum industry, contributed so much to the welfare of mankind.”

Visitors to the area can see “wonderful commemorative art displays of this era throughout the lush parks and walkways of Signal Hill,” reported the Long Beach Beachcomber. Dedicated on September 30, 2006, the statue “Tribute to the Roughnecks” can be found on Skyline Drive.

“Tribute to the Roughnecks” by Cindy Jackson stands atop Signal Hill. Long Beach is in the distance. Signal Hill Petroleum Chairman Jerry Barto and Shell Oil employee Bruce Kerr are depicted in bronze.
The first California oil wells were drilled near oil seeps in the northern part of the state around the time of the Civil War. These Pico Canyon wells produced limited amounts of crude oil, but there was no market for the oil. Larger oilfields would be revealed in the early 1890s about 35 miles to the south.

Earlier explorers noted evidence of California’s petroleum fields by the large number of oil seeps, both onshore and offshore. California’s first commercial oil well in 1876 was drilled in Pica Canyon, well known for its asphalt seeps.
Between 1913 and 1923 Hollywood used the derricks on Signal Hill in movies starring Buster Keaton and Fatty Arbuckle. In 1957, what many consider the world’s first “all jazz” radio station, KNOB (now KLAX), first transmitted from a small studio on top of the historic oil hill.
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Recommended Reading: Signal Hill, California, Images of America
(2006); Huntington Beach, California, Postcard History Series
(2009); Black Gold in California: The Story of California Petroleum Industry
(2016). Your Amazon purchase benefits the American Oil & Gas Historical Society. As an Amazon Associate, AOGHS earns a commission from qualifying purchases.
_______________________
The American Oil & Gas Historical Society (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.
Citation Information – Article Title: “Signal Hill Oil Boom.” Authors: B.A. Wells and K.L. Wells. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/signal-hill-oil/. Last Updated: June 14, 2024. Original Published Date: April 29, 2013.