*** economies United States America oil inter-war era








United States Petroleum Industry: Inter-War Era

American oil industry inter-war era
Figure 1.--As Americans began buying cars, they wanted to go places abd improved roads for the mot part did not exist beyond cities. Roads in the country side have been described as basically wagon trails as late as the 1910s and to make matters worse there were no gas stations. As roads began to be built beyond the cityy line, gas stations followed. Here we see what looks like a Model-A Ford, we think in the early-1930s. We would have guessed the mid-30s if the car did not look so new. The photograph may have been taken in Bklackwood, New Jersey east of Philadelphia.

The Roaring Twenties ignited the American economy. Now more and more Americans had cars. And they wanted better cars, not just the venerable basic Model-T. The autiomobile industry boomed and the Tin Lizzie had all kinds of competition with heavier, more luxurios models and innovations like larger, more powerful engines, starter engines, enclosed cabs, chrom trim, apolstered comfortable seating, and much more. People had money to spend and cvars were a major way of spending it. This created a massive industry, exceeding the production of all of Europe. And it was a major factor in a massive industrial expansion that meant that by the time Hitler and Stalin launched World War II (1939), the American economy was comparable to that of Britain, France, and Germany combined. Americans had more and better cars and they wated to go places in them. This presented a problem--a national highway system did not exist. There were few improved roads beyond city limits. Outside the cities a btter desription was wagon trails, especially in the West. Many of the major routes which would become highways were the surviving vestiges of old historic trails, such as the Oregon Trail or Santa Fe Trail. Automobile clubs like the American Automobile Association organized to lobby for better roads. We see the birth of named highays. The Lincoln Highway from New York to San Francisco was the first. Highway organizations were formed which placed and promoted their routes. Eventually there were over 250 named highways (1925). Colored signs marked these routes. Haphazard placement created motorist confusion. It became clear that the Federal Government would have to become involved to create a unified national highway system. Autmobile associations began demanding that the Bureau of Public Roads (part of the Department of Agriculture) study the idea. One idea was to give American highways a standard numerical designation. At the same time, road building technolgy was not only significantly improving and you begin to see improved roads at the Cajon Pass and over the Ridge Route. The Depression ended the car buying spree, but notably production coninued. Will Rogers quipped that "America was the first country to go to the poor house in the automobile." Refugees from the Dust Bowl heased to Califiornia in cars piled high with their belonings. All of this mean ever increasing quantities of oil was needed. And Texas oil men provided what was needed. The reprted important discoveries near Mexia in Limestone County and more in Navarro County. Oil was discovered in the Panhandle (1921). Major fields were developed all across Texas. The most important of all was found in East Texas. Other finfs included west-central Texas and more fields in the Gulf Coast. The Daisy Bradford No. 3 erupted blew in near Turnertown and Joinerville in Rusk County (October 1930). This was the beginnig of the vast East Texas field. Noted wildcatter C.M. (Dad) Joiner drilled the first East Texas well on land that had been ignored by the geologists wmployed by the oil majors. These would be the field that would fuel the Allied World War II effort. At the same time, the Majors (Gulf Oil, BP, Texaco, and Chevron) were awarded cncessions that made would evebtually make major discoveries in Kuwait, Saudi Arabia, and Libya.

The 1920s

The Roaring Twenties ignited the American economy. Now more and more Americans had cars. And they wanted better cars, not just the venerable basic Model-T. The autiomobile industry boomed and the Tin Lizzie had all kinds of competition with heavier, more luxurios models and innovations like larger, more powerful engines, starter engines, enclosed cabs, chrom trim, apolstered comfortable seating, and much more. People had money to spend and cvars were a major way of spending it. This created a massive industry, exceeding the production of all of Europe. And it was a major factor in a massive industrial expansion that meant that by the time Hitler and Stalin launched World War II (1939), the American economy was comparable to that of Britain, France, and Germany combined. All of this mean ever increasing quantities of oil was needed. And Texas oil men provided what was needed. The reprted important discoveries near Mexia in Limestone County and more in Navarro County. Oil was discovered in the Panhandle (1921). Major fields were developed all across Texas. The most important of all was found in East Texas. Other finfs included west-central Texas and more fields in the Gulf Coast. The Daisy Bradford No. 3 erupted blew in near Turnertown and Joinerville in Rusk County (October 1930). This was the beginnig of the vast East Texas field. Noted wildcatter C.M. (Dad) Joiner drilled the first East Texas well on land that had been ignored by the geologists wmployed by the oil majors. These would be the field that would fuel the Allied World War II effort. At the same time, the Majors (Gulf Oil, BP, Texaco, and Chevron) were awarded concessions that made would evebtually make major discoveries in Kuwait, Saudi Arabia, and Libya. Fr more Americans owned cars and they wanted to go places in them. This presented a problem--a national highway system did not exist. There were few improved roads beyond city limits. Outside the cities a btter desription was wagon trails, especially in the West. Many of the major routes which would become highways were the surviving vestiges of old historic trails, such as the Oregon Trail or Santa Fe Trail. Automobile clubs like the American Automobile Association organized to lobby for better roads. We see the birth of named highays. The Lincoln Highway from New York to San Francisco was the first. Highway organizations were formed which placed and promoted their routes. Eventually there were over 250 named highways (1925). Colored signs marked these routes. Haphazard placement created motorist confusion. It became clear that the Federal Government would have to become involved to create a unified national highway system. Autmobile associations began demanding that the Bureau of Public Roads (part of the Department of Agriculture) study the idea. One idea was to give American highways a standard numerical designation. At the same time, road building technolgy was not only significantly improving and you begin to see improved roads at the Cajon Pass and over the Ridge Route.

The 1930s

The American Stock Market crashed (September 1929). Goverment policies, especiall Federal Reserve reductions in the money supply, turned an ordinary recession into the Great Depression which spread from America throughout the world with devestating consequences. The Depression ended the American car buying spree, but notably some production coninued. Will Rogers quipped that "America was the first country to go to the poor house in the automobile." Refugees from the Dust Bowl heased to Califiornia in cars piled high with their belonings. The American oil mindistry like other industries was adversely affected by the Depression. THe demand for gasolinge and other petrtoleum products plummeted causing prices to fall. Many smaller compnies were fced wityh bsnkruptsy. The Federal government several ail producing state governments worked out an an arrangemebt with oil compsnoes to control production. It placed an ipper limit on production. Output quotas were allocated so that marginal producers could survive by likmiting the price declines and the huge excess capacity. Texas, the most important single state, had their own ideas. They obkected to the idea promoted by Dederakl authoriries to pool their extractive operations in each field, As a result, wasteful extractive operations continue. High-cost marginal wells continue to operte. This preserved lower-cost fields for future use. The higher resulting prices had an impsctg on consumption. The Texas Railroad Commission served as kind of balance wheel. This system continued even after the Depression into the early-1970s. Domestic production could no longer fill national demand.











CIH






Navigate the Children in History Website:
[Return to the Main U.S. oil industry page]
[Return to the Main hydrocarbons page]
[Return to the Main U.S. economic sector page]
[Return to the Main U.S. Economics page]
[Return to the Main Economics page]
[About Us]
[Introduction] [Biographies] [Chronology] [Climatology] [Clothing] [Disease and Health] [Economics] [Freedom] [Geography] [History] [Human Nature] [Ideology] [Law]
[Nationalism] [Presidents] [Religion] [Royalty] [Science] [Social Class]
[Bibliographies] [Contributions] [FAQs] [Glossaries] [Images] [Links] [Registration] [Tools]
[Children in History Home]






Created: 11:57 AM 6/6/2019
Last updated: 11:57 AM 6/6/2019