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The Spindletop oilfield, discovered on a salt
dome formation south of Beaumont in eastern Jefferson County on
January 10, 1901, marked the birth of the modern petroleum
industry. The Gladys City Oil, Gas, and Manufacturing Company,
formed in August 1892 by George W. O'Brien, George W. Carroll,
Pattillo Higgins,qv Emma E.
John, and J. F. Lanier, was the first company to drill on
Spindletop Hill. Three shallow attempts, beginning in 1893 and
using cable-tool drilling equipment were unsuccessful; Lanier
and Higgins had left the company by 1895. Anthony F. Lucas,qv
the leading United States expert on salt dome formations, made a
lease with the Gladys City Company in 1899. Higgins and Lucas
made a separate agreement a month later. With Lucas in charge of
the drilling operation, another attempt was made on the John
Allen Veatchqv survey on
Gladys City Company lands. Lucas was able to drill to a depth of
575 feet before running out of money. He was also having great
difficulty with the tricky sands of the salt dome. Despite the
negative reports from contemporary geologists, Lucas remained
convinced that oil was in the salt domes of the Gulf Coast. He
finally secured the assistance of John H. Galeyqv
and James M. Guffey of Pittsburg. Much of the Guffey and Galey
support was financed in turn by the Mellon interest; their terms
excluded Higgins and left Lucas with only a small share of the
potential profits. Nonetheless, Lucas pressed ahead in his
effort to vindicate his theories. Galey and Guffey played a
crucial role by bringing in Al and Curt Hamill, an experienced
drilling team from Corsicana. Lucas spudded in a well on October
27, 1900, on McFaddin-Wiess and Kyle land that adjoined the
Gladys City Company lands. A new heavier and more efficient
rotary type bit was used. From October to January 1901, Lucas
and the Hamills struggled to overcome the difficult oil sands,
which had stymied previous drilling efforts. On January 10 mud
began bubbling from the hole. The startled roughnecks fled as
six tons of four-inch drilling pipe came shooting up out of the
ground. After several minutes of quiet, mud, then gas, then oil
spurted out. The Lucas geyser, found at a depth of 1,139 feet,
blew a stream of oil over 100 feet high until it was capped nine
days later and flowed an estimated 100,000 barrels a day. Lucas
and the Hamills finally controlled the geyser on January 19,
when a huge pool of oil surrounded it, and throngs of oilmen,
speculators, and onlookers had transformed the city of Beaumont.
A new age was born. The world had never seen such a gusher
before. By September 1901 there were at least six successful
wells on Gladys City Company lands. Wild speculation drove land
prices around Spindletop to incredible heights. One man who had
been trying to sell his tract there for $150 for three years
sold his land for $20,000; the buyer promptly sold to another
investor within fifteen minutes for $50,000. One well,
representing an initial investment of under $10,000, was sold
for $1,250,000. Beaumont's population rose from 10,000 to
50,000. Legal entanglements and multimillion-dollar deals became
almost commonplace. An estimated $235 million had been invested
in oil that year in Texas; while some had made fortunes, others
lost everything.
The overabundance of wells at Spindletop led
to a rapid decline in production. After yielding 17,500,000
barrels of oil in 1902, the Spindletop wells were down to 10,000
barrels a day in February 1904. Deposits from the shallow
Miocene caprock seemed to diminish, but the Spindletop oilfield
had not yet dried out. A second boom came when Marrs McLeanqv
speculated that production could be found on the flanks of the
dome. Miles F. Yountqv also
believed more oil was present at deeper depths. Their
convictions proved correct; on November 13, 1925, the Yount-Lee
Oil Company brought in a flank well drilled to 5,400 feet. This
and other discoveries on the flanks of the salt dome set off
another speculative boom. The Gladys City Company participated
with the Yount-Lee Oil Company and others in this second boom.
Although this second wave was more controlled than the first,
competition was keen; one particular one-acre tract sold for
$200,000. By 1927 Spindletop production reached its all-time
annual high of 21,000,000 barrels. Within five years 60,000,000
barrels had been produced, largely from the new-found deeper
Marginulin sands of the flank wells. Additional deposits were
found in the Midway (Eocene) formations in 1951. Over
153,000,000 barrels of oil had been produced from the Spindletop
fields by 1985.
The discovery of the Spindletop oilfield had
an almost incalculable effect on world history, as well as Texas
history. Eager to find similar deposits, investors spent
billions of dollars throughout the Lone Star state in search of
oil and natural gas. The cheap fuel they found helped to
revolutionize American transportation and industry. Storage
facilities, pipelines, and major refining units were built in
the Beaumont, Port Arthur, Sabine Pass, and Orange areas around
Spindletop. By 1902 there were more than 500 Texas corporations
doing business in Beaumont. Many of the major oil companies were
born at Spindletop or grew to major corporate size as a result
of their involvement at Spindletop. The Texas Company (later
Texacoqv), Gulf Oil
Corporation,qv Sun Oil
Company, Magnolia Petroleum Company,qv
and Humble (later Exxon Company, U.S.A.qv)
were a few of the major corporations. The Spindletop oilfield
again boomed in the 1950s, with the production of sulphur by
Texas Gulf Sulphur Company (later Texasgulf
qv), until about 1975. Salt-brine extraction
became a lucrative operation in the 1950s. In 1963-66 even
deeper oil production was achieved with an average depth of
9,000 feet. The old field continued in the 1990s to yield very
limited oil production in the form of stripper wells and salt
brine production. Some parts of the salt dome cavities were
being developed as storage facilities for petroleum products. In
commemoration of the importance of the development of Spindletop
oilfield, a Texas pink granite monument was erected in 1941 near
the site of the Lucas gusher. The withdrawal of oil, sulphur,
and brine from beneath the surface, however, caused the
Spindletop dome to subside, and the monument was moved to the
recreated Spindletop/Gladys City Boomtown Museum across the
highway on the Lamar University campus at Beaumont. The Gladys
City Company, as well as many major oil companies, continued to
reap the benefit of their involvement in the discovery of the
Spindletop oilfield.
BIBLIOGRAPHY: James Anthony Clark and Michel
T. Halbouty, Spindletop (New York: Random House, 1952).
Everett DeGoyler, "Anthony F. Lucas and Spindletop,"
Southwest Review 30 (Fall 1945). George Fancher et al.,
The Oil Resources of Texas (Austin: Texas Petroleum Research
Committee, 1954). Judith Walker Linsley and Ellen Walker
Rienstra, Beaumont: A Chronicle of Promise (Woodland
Hills, California: Windsor, 1982). Edgar Wesley Owen, Trek of
the Oil Finders: A History of Exploration for Petroleum
(Tulsa: American Association for Petroleum Geologists, 1975).
Joseph A. Pratt, The Growth of a Refining Region
(Greenwich, Connecticut: Jai Press, 1980). Carl Coke Rister,
Oil! Titan of the Southwest (Norman: University of Oklahoma
Press, 1949). Spindletop/Gladys City Boomtown Museum: A Guide
and a History (Beaumont: Lamar University, 1992).
Robert Wooster and Christine Moor Sanders
- Handbook of Texas Online, s.v.
","
http://www.tshaonline.org/handbook/online/articles/SS/dos3.html
(accessed March 3, 2008).
(NOTE: "s.v." stands for sub verbo, "under the word.")
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