USA > Texas > The encyclopedia of Texas, V.1 > Part 6
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The discovery of "Spindle Top" or the "Beaumont Field," as it is more properly called, was a "real epoch," a "decisive period" in the oil business. It was the first opportunity of the "Independents" in .
E
The New Magnolia Building, Dallas, the Tallest Office Building in Texas, Completed in 1922
the history of oil. This Beaumont field together with the later discovery of Sour Lake, Batson, Sar ?- toga, and Humble, and later still at Goose Creek and West Columbia, all have produced a total of more than 250,000,000 barrels of oil, and from an actual producing area for the total of these fields, of probably not to exceed 4,000 acres
But Texas is a large state and all of its oil was not to be confined to its coastal fields. Before the Beaumont discoveries a very profitable pool of oil had been found at Corsicana, Navarro County, Texas, but not until the Electra Field in Wichita County was developed was the production in Texas of high grade oils for refining purposes really an important factor in the industry. This was in 1911
The interest in Electra has subsided, the "wise ones" who had finally come to Texas when this real oil was discovered, had returned to Oklahoma and
A Wilderness of Oil Derricks in the Goose Greek Oil Fields Southern Texas
24
ENCYCLOPEDIA OF TEXAS
the east, and it was the faith of Edgar L. Marston, of New York City, President of the Texas-Pacific coal Company, and W. K. Gordon, his able manager in Texas, who called them back, when in the month of October 1917, they drilled to the "Farmer's" sand and developed the MeClesky well, near the then small town of Ranger, Eastland County, Texas. The developments following this discovery have opened the eyes of the world to the possibilities of Texas, as the Great Reservoir, from which the greatest production of oil for many years to come, will be obtained. As a result of this new discovery, "wild eatting" (the name for drilling in new territory be- fore the discovery of oil in the vicinity) was stim- ulated, and has resulted in a greatly enlarged pro- ducing area around Ranger at Caddo and Brecken- ralge in Stephens County, and at Desdemona in Com- merce County, and also the development of the new and spectacular Burkburnett field in Wichita County These discoveries promise to extend not only over these counties but into the adjoining counties of Young, Wilbarger and Archer, also Palo Pinto. In each of these counties light oil in small quantities has already been discovered. How much further this development will be extended within the counties named, and with what results, or whether oil will be developed in paying quantities in additional coun- ties in North Texas, is beyond the knowledge of man. More recently the Mexia field in Limestone County, had been developed by Col. A. E. Humphreys one of the most spectacularly successful "wild cat- ters" in the business. This new development opens up again possibilities for Texas to become the great producing state of the Union.
Great sums of money are being, and will yet be, spent in practically every county of Central, North and Northwest Texas, and while geology is being followed very largely in these efforts, it is only the drill that will produce results.
An average well in the Comanche, Eastland, and Stephens County fields, is from 3,000 to 3,400 feet deep, to where the oil is found in what is known as the "Black Line" formation. These wells will vary in size from 25 barrels to 12,000 barrels in their initial production, and cost from $32,000 to $50,000 each to drill and equip. Such wells cannot be prof- itably drilled at present high cost of labor, material, rte., if they produce less than 100 barrels or more per day, and wells of this minimum size must prove consistent producers for a long period in order to pay out. The fields have not been producing for a sufficiently long period to determine this.
Shallow oil is also being developed in these areas at from 1,800 to 2,150 feet in depth and this oil, on account of the greater amount of sand, and the lesser cost of drilling, may yet prove of greater value than the deep production.
In the Burkburnett field, the oil is found at from 1,500 to 1,750 feet, and the cost of a well is much less, probably now about $20,000; the amount of producing sand is greater in this field, also, than in the "Black Line" district, further south, and within the confines of the pool the average initia! production of the wells is greater. This field has -on the "Eldorado" of the small producer, and where the operations have been carried on with good judgement, and the financing honest and reasonably conservative, will probably make for the operators
and their stockholders, more money on the average than any of the Texas fields, so far developed.
The oil of North and North Central Texas, is of a gravity varying 34 degrees B, to 44 degrees B. It gives a yield of Gasoline of from 12 to 40% and much of it has good lubricating values. It is pro- bably the equal in value of the average Oklahoma oil, excepting that of the Healdton field, which is much inferior, much of it is better than the Kansas oil, and is better than that produced in Ohio, Illi- nois and Indiana, but not the equal of the oils pro- duced in Pennsylvania and West Virginia, on account of the superior lubricating values of these latter oils.
When the Texas-Pacific Coal & Oil Company made the discovery in the McClesky well at Ranger, Texas was producing not over 30,000 barrels of light oils in all of its then developed fields; it is now produc- ing about 200,000 barrels, or a production on Nov. 1, 1921, much less than that of Kansas and Okla-
Oil Gusher at Currie, which Opened Up a New Field Four- teen Miles North of Mexia
homa combined. South Texas is producing about. 110,000 barrels. What Texas will produce in the future is anyone's guess, but my prediction is that this production will gradually grow, and that for the next twenty years, Texas will be leader in the pro- duction of the light and high grade oil of the world.
In conclusion, this means prosperity for all con- cerned, for the farmer, for the merchant, for the banker, for the worknien in the field, and for the oil operator. The cities of Dallas, Ft. Worth and Wichita Falls have greatly prospered, and in the future will still greatly prosper by these develop- ments and from the general good times resulting from this new discovery in their midst.
25
OIL PRODUCTION OF TEXAS BY FIELDS FROM 1895 TO JANUARY 1, 1922
Year
Corsicana
Powell
Petrolia
Spindle Top
Sour Lake
Batson
Saratoga
Humble
Goose Creek
1895
1896
1,450
1897
65,975
1898
544,620
1899
668,483
1900
829,560
5,479
3,593,113
44,338
4,518
739,239
1905
312,595
131,051
101,651
1.600,379
3,369,012
3,790,629
2,922,215
18,066,428
1906
336,387
675,842
111,072
1.075,755
2,156,010
2,388,238
2,289,057
3,570,845
1907
276,311
596,897
83,260
1,613.513
2.354,997
2,166,554
2,198,585
2,930,842
1908
211,117
398.649
113,485
1,747,537
1,595,060
1,593,570
1,634.786
3,778,521
1909
180,764
383,137
113,485
1,388,170
1,703,798
1,206,214
1,183,559
3,237,060
1910
137,331
450.188
126,531
1,182,436
1,518,723
1.113,767
1.024,348
2,495,511
1911
128,526
373,055
168,965
965,939
1,364,880
1,023,493
925,777
2,426,220
43,808
1913
158,830
283,476
344,868
716,374
1,348,053
741,350
937,720
1,504,880
249,641
1914
133,811
282,279
550,585
580,130
5,209,208
775,804
889.743
2,799,458
134,748
1915
143,275
237,410
349,857
388,266
4.114,622
703,686
864,266
11,061,802
119,336
1916
135,263
215,729
302,145
340,441
4,923,332
744,915
781,128
10,925,805
397,291
1917
131,828
196,855
282,420
308,039
4,763,004
692,417
682,797
7,389,831
7,300,279
1918
*361,980
297,320
502,265
3,115,033
654,950
790,740
5,645,104
9,419,132
1919
*150,000
212,624
458,680
2,740,142
502,200
616,110
3,270,617
7,288,716
1920
530,000
135,385
323,995
2,073,485
484,035
913,735
3,692,115
5,666,390
1921
305,335
132,295
321,080
1,749,625
516,225
936,695
3,098,500
5,647.020
Totals
8,087,361
4,794,692
3,657,978
47,384,644
60,608,946
30,851,865
22,447,155
87,723,462
36,266,261
*Includes Powell.
Year
Orange County
Matagorda County
Dayton
Blue Ridge and Other Pools
Marian County
Wichita and Wilbarger Counties
Moran
Thrall Miscellaneous
1904
151,936
1905
46,470
60,294
1906
8,000
192,460
1907
4,500
120,036
31,185
129,497
251,717
899.579
1913
17,706
294,553
13,329
1,620
262,392
8,131,624
1915
21,697
137,481
10,378
47,254
123,464
5,833,386
109,116
613,182
4,061
1916
17,758
158,336
8,571
43,921
64,971
7,837,386
135,608
432,695
32,140
1917
-7,023
128,011
9,995
159,245
57,952
9,541,636
68,118
176,887
111,220
1918
3,425
99,340
7,442
40,000
12,159,032
54,900
12,000
130,000
1919
4,400
53,260
1,000
24,910
30,279,108
32,500
8,200
235,075
1920
4,000
75,775
1,000
*173,085
32,895,485
48,575
8,000
25,000
1921
704,870
89,405
30,410
*461,035
24,184,955
50,455
73,280
24,000
Totals
824,087
2,821,029
557,331
1,204,415
1,981,639
144,217,246
567,463
1,324,244
601,640
** Figures not obtainable.
*Blue Ridge only.
e-Estimated
Year
Strawn
Coleman County
Eastland County
Stephens County
Desdemona
Brown County
Damon Mound
Hull
1915
50,498
1916
175,147
1917
340,950
93,053
36,219
6,040
1918
185,520
31,253
3,107,120
790,243
451,002
486,640
330,300
1919
101,300
46,590
22,379,665
10,514,216
7,375,825
213,256
434,700
1,476,405
1920
512,260
83,785
10,141,385
23,852,050
5,097,745
114,665
1,259,375
4,468.615
1921
262,055
66,190
5,887,420
31,037,710
2,467,115
122,475
1,353,960
8,717,970
Totals
1,627,730
227,819
41,608,643
66,230,438
14,940,685
907,438
3,534,675
14,993,290
Year
Mexia
Young County
Nacogdoches Holliday-Archer
County
Pierce Junction
Barber's Hill
West Columbia
San Antonio District and Somerset
1918
20,000
136,350
58,400
1919
169,415
8,128,809
94,100
1920
134,895
75,000
49,850
136,375
10,563,150
245,135
1921
4,716,805
2.820,080
103,035
422,205
1,403,940
49,885
12,573,450
482,340
Totals
4.716,805
2,954,975
178,035
472.055
1,403,940
375,675
31.401,759
879.975
1889
48
1804
60
1899
669 013
1904
22 241 413
1909
9 534 467
1914
20 068 184
1919
85 312 000
1890
54
1895
50
1900
836 039
1903
28 136 189
1910
8 899 260
1915
24 942 701
1920
96 000 000
1891
54
1896
1 450
1901
4 393 658
1906
12 567 897
1911
9 526 474
1916
27,644,605
1921 111,969,575
1892
45
1897
65.975
1902
18.083,659
1907
12,322,696
1912
11.735,057
1917
32,413,287
1893
50
1898
546,070
1903
17 955 572
1908.
11,206,464
1913
15,009,478
1918
38,50,031
620,831,50)
TOTAL AMOUNT OF OIL PRODUCED IN EACH STATE IN 1921-ALSO AMOUNT PRODUCED FROM 1859 TO JAN 1, 1922
Total 1921
1859 to 1922
Total 1921
1859 to 1922
Total 1921
1859 to 1921
Pa, and N. Y. ..
8.410.(KX)
814.415,053
Colorado. Indiana.
108,200 1,165,000
109,132,364
Oklahoma.
111,256,160
1,149,429,517
Wext Virginia
7,945 000
319.625,398
Illinois
331.518,380
Wyo. & Mont .....
20.473,800
91,242,69%
California,
114,267,000
1,431,383.300
Kansas.
10,085,000 24,312,586
256,303,984
Louisiana.
27,814,380
230,483,291
Ky. & Tenn ..
9,092,300
41,015,992
Texas
111,969,575
620 831,550
United States
474,858,216
5,904 550,935
1912
300,000
12,151
1,044
362,870
4,227,104
1914
43,208
164,192
18,791
1,780
180,584
8,227,951
68,191
4.525
1909
29,103
17,647
87,039
4,554
1910
455,999
9,582
3,656
1911
561,828
4,344
2,800
677,689
1912
233,282
251,240
197,421
822,916
1,175,108
844,563
1,116,655
1,829,923
1903
401,817
100,143
8,600,905
8,848.159
1904
374,318
129,329
65,455
3,433,842
6,442,357
10,904,737
1901
763,424
37,121
1902
571,079
46,812
17,420,949
ـا معافى
$6,977
Ohio
7,314,000
486,336,978
.
11.779,250
Missouri
26
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TOTAL PRODUCTION OF OIL FOR TEXAS EACH YEAR FROM 1889 TO JAN. 1, 1922 IN BARRELS OF 42 GALLONS
Grand Total from 1889 to 1921.
62,640
39,901
3,379
4,062
7,074
12,900
1908
HISTORY OF SOUTHERN TEXAS OIL INDUSTRY By D. R. BEATTY Pioneer Oil Operator
T HE history of oil de- velopment in what is known as the Coastal region comprising the terri- tory bordering the Gulf of Mexico in South Texas and South Louisiana dated back to the famous Lucas gusher well at Spindle Top, in Jef- ferson County, three miles south of Beaumont by com- mon consent. This well came in in January, 1901, but as a matter of fact shallow wells had been drilled pre- vious to that date in what are now known as the Sour Lake, Saratoga and Spindle Top Pools. As far back as 1883 small wells producing a heavy natural lubricat- ing crude had been developed at Oil Springs, a short distance from the town of Nacogdoches in Nacogdoches County. These wells found the oil in a sand around 280 feet.
A pipe line was laid to Nacogdoches and the oil shipped out in cars for use by railroads, but big marketing companies in the east made contracts with the roads of the southwest for their lubricating needs at price that made it unprofitable to operate the shallow holes.
As far back as 1895 and 1896 the Savage Bros., contractors from West Virginia, drilled shallow wells at Sour Lake and Saratoga, getting light wells around 250 feet. Long before that, however, "spring pole" holes had been put down at Saratoga, getting a heavy gravity crude which was sold for medicinal purposes. Sour Lake had enjoyed a reputation as a local health resort on account of the "sour" water springs and its fame had spread as far east as New Orleans and over to St. Louis, guests coming from both places for the mud baths and to drink the waters.
The development of the Coastal pools was a long, up-hill fight and it is safe to assume that no other oil producing section received less aid in the work of development from the larger oil companies then in the lead in the eastern fields. The product was looked upon as a low grade crude, fit only for fuel purposes and these large eastern companies adopted a policy of hands off. Financing the develop- ment work fell largely on the shoulders of men who had been identified with lumber and other interests in South Texas and Southern Louisiana. Much criti- cism has been attached to the methods of promoters of oil com- panies in the early days of the in- dustry in the Coastal region, but a large part of that criticism is un- . just. Those men who were interest-
ed in the early day developments were compelled to seek outside financial aid, but the big banking in- terests of the east followed the example of the large oil companies and declined to identify themselves with the prospect. In this emergency operators found it necessary to turn to the public, through the medium of advertising and other methods to secure investors who would put in the money to develop the pools. That fake promoters took ad- vantage of the situation cannot be denied and that irregularities followed is a matter of the history of the pools. Most of those originally interested in the developments during the early days knew little or nothing about the petroleum industry. Fuel markets for their product had to be found in com- petition with coal and the big railroad systems were naturally loath to adopt what to their officials looked like an experiment. Meantime, the wells were allowed to flow and soon the quotation dropped to as low as three cents per barrel. The result was failures and the loss of investments by those who had looked forward to fortunes with a conse- quent reputation that the original operators do not deserve.
Gradually, the large eastern companies became converted to the value of the Coastal product and became interested in the development work, laying pipe lines, building refineries and establishing mar- keting agencies. Among the first of these was the J. M. Guffey Petroleum Company, financed by the Mellon interests, of Pittsburg, Pa .; the Sun Company, Security Oil Company, et al. 'T'he 'l'exas Company, now one of the leading oil corporations in the world, had its inception at Spindle Top and the Gulf Refining Company is another. The little 100 barrel lubricating plant started in 1898 at Sour Lake by the Gulf Coast Refining Company, operat- ing on the production of five wells producing from
One of the Large Office Buildings in the Business Section of Houston
27
ENCYCLOPEDIA OF TEXAS
around 280 feet, has given place to the immense refining plants of the Texas Company and Gulf Pro- duction Company at Port Arthur, each with a charg- ing capacity of 60,000 barrels per day; the Mag- nolia Petroleum Company at Beaumont, with a ca- pacity of 65,000 barrels per day; Galena-Signal Oil Company on the Houston Ship Canal and the Pierce Oil Corporation plant at Texas City, while the Sin- clair Oil & Refining Company will start its 20,000 barrel plant next month. The Crown Oil & Refining Company is erecting a 20,000 barrel capacity re- finery on the channel and the Humble Oil & Refining Company is building a plant that will eventually have a capacity of 60,000 barrels per day. Half a dozen smaller plants are either operating or are in the process of construction. Not all these plants, however, are designed to operate on the Gulf Coast crude. The Galena-Signal Oil Company is using Coastal crude exclusively for the manufacture of lubricants. However, the producing end of all these companies started originally in the Gulf Coast pools, and are still producing two-thirds of the out- put from them.
Among the men first identified with the Gulf region, who are now national figures in the oil world may be mentioned: Judge R. E. Brooks, a director of the Texas Company, who forsook the law for the oil business at Spindle Top; C. N. Scott, vice-president and general manager of the Texas Company; Messrs. Thomas J. and Ambrose M. Donoghue, both connected with the Texas Company; Judge Wm. D. Bates, with the Texas Company; D. R. Beatty, who brought in the first big well in the Humble pool, January 7, 1905, flowing 8,000 barrels per day, the second well at Spindle Top and the second well at Sour Lake; J. S. Cullinan, presi- dent Republic Production Company, president Ga- lena-Signal Oil Company, director in the Fidelity Trust Company, president Houston Chamber of Commerce and president Texas Chamber of Com- merce. Mr. Cullinan was formerly president of the Texas Company; J. Edgar Pew, of the Sun Company, whose ancestors were among the pioneer operators in the Pennsylvania fields; T. P. Lee, vice-president and general manager Republic Production Company; E. F. Woodward, one of the organizers of the Re- public Production Company; H. T. Staiti, and E. F. Simms, both large operators now in Texas, Louisiana and Oklahoma; Walter Sharpe and Billie Lyons, both pioneer operators in the Gulf Coast and now associated with the producing end of the Texas Company; Cal Clark, now with the Standard Oil Company of Louisiana, one of the organizers of the Burt Refining Company of Beaumont, now owned by the Standard; Capt. Terrell, one of the original promoters of the Haywood Oil Company; Haywood Brothers, pioneer operators; Jas. Jolley, manager Empire Gas & Fuel Company of Texas; Niels Esper- son, Jno. O'Neal, J. R. Cheek, R. L. Blaffer, R. L. Young, W. S. Farish, W. W. Fondren, J. C. McKal- lipp, Harry Weiss, J C. Wilson, R. C. Duff, Jim West and H. H. Myers, all pioneer operators in the Gulf Coast, some of whom, however, have become interested in Oklahoma and the latter North Central Texas fields. Gov. Hogg and Will C. Hogg, pro- nioters of the Landslide Oil Company; Burt & Grif- fith, noted for their efforts to develop new fields; Jack E. Crosby, pioneer operator at Spindle Top; J. E. Webb, operator and considered one of the best well men in the Gulf Coast; R. S. Sterling, largely
through his efforts the Humble Oil Company oc- cupies the commanding position, in the oil industry, which it does today; Lee Hager, looked upon as one of the most prominent geologists in the Gulf Coast; W. C. Turnbow, another of the pioneers who has interests in practically all the fields in Texas, also owner of one of the largest cattle ranches in Texas; Underwood Nazro, vice-president of the Gulf allied interests; Joe McCue, now on the execu- tive board of the Texas Company, was one of the first Pittsburg operators to reach Spindle Top after the bringing in of the Lucas well. He took full charge of all development for Guffey & Gayle, who purchased the Lucas well; Chas. Wallis, formerly president of the Higgins Oil Company, who was one of the first operators at Spindle Top; Jno. Gil- bert; Steve Pipkin; Judge Douglas, pioneer operator at Batson; Duson Brothers, connected with the Crowley Oil & Mineral Company of Jennings, La .; Tump Bass, Jno. H. Kirby, now heavily interested in North Central Texas; A. F. Tarver and Ed. Peggie; Dias Brothers, who opened up the Saratoga pool; Capt. Lucas, owner of the famous Lucas gusher; Ed Prater, connected with Walter Sharp during the Spindle Top days; Jim Putnam, owner of Sour Lake property; Jno. Gonzalas, operator at Sour Lake; W. S. Griffith, Murry Done, acting vice- president of the Gulf Company, formerly with the Sun Company; Mr. Grives, who was connected with the Star & Crescent Oil Company; H. S. Revis, editor Investors' Journal; Farmer Dean, pioneer operator at Big Hill, Matagorda County.
History of the Pools. Singular as it may seem the first big well at Spindle Top was started by Capt. A. F. Lucas as a sulphur proposition, backed by Guffey and Galey, who were the leading "Wild- catters" in the business. In 1892 Patillio Higgins drilled a hole to 300 feet where he quit on account of the lack of tools. Sharp & Company drilled a shallow hole in 1894, followed by J. Loomey in 1896. The Savage Bros. made a shallow test in 1898 and in October, 1900 C. G. and Al Hamel drilled in the famous Lucal well which was estimated as high at 75,000 barrels, getting the pay between 1,120 and 1,139 feet. The second well, known as the Betty well, was drilled in by Stern Brothers, estimated at 40,000 to 50,000 barrels per day. Fifteen wells had been completed by July, 1901. The producing area covered about 250 acres on a slight elevation about 15 feet above sea level.
Sour Lake. The first development at Sour Lake, which is some 18 miles west of Beaumont, in Hardin County, Texas, was in 1893, when a little 16 per cent (Beaume) oil was found at a depth of fron 260 to 370 feet by Walter Sharp. This was not de- veloped commercially. In 1895, the Savage Brothers found oil in several shallow wells. In 1895 the Gulf Coast Refining Company built a small 100 barrel refinery and five wells were drilled, none of them exceeding 280 feet in depth. In three of them the Savage Brothers found oil at 230 feet of about 16 gravity. The first large well was brought in by . Walter Sharp on the Shoestring tract, and the second large well was drilled in by Mitchell & Little for D. R. Beatty on the Cannon tract. This well flowed one year to a day.
In 1901 the J. M. Guffey Petroleum Company got gas and sonie oil at 822 feet. Hooks, No. 1 in the Saratoga pool came in in 1902. flowing 1,000 barrels at 1,000 feet. Brice, No. 1 was a big well at 400
--.
28
ENCYCLOPEDIA OF TEXAS
feet. During the years 1903-4 the 800 and 1,000 foot sands were developed with a deeper pay found in 1905.
Batson. Batson field was discovered through oil and gas seepages, the first producing well being drilled in October, 1903, by the Paraffine Oil Com- rany of Beaumont, which later became a part of the Humble Oil Company. The first well was fin- .hed at 1,280 feet by Mitchell & Little, and was a fair producer of 23 Beaume oi !.
Within the next forty-five days four wells had ?cen completed by the Paraffine and Producers (pro- ducing subsidiary of the Texas Company) had prac- twally the entire field under lease. As the oil was found at comparatively shallow depths, wells were finished in a hurry. The Guffey and the Texas Company had laid pipe lines from the field to Sara- toga, where they connected with their Sour Lake pipe lines, and the Guffey had built a telegraph une through the wilderness between Batson and Saratoga.
The real excitement did not begin until Decem- br 19th, when the Paraffine No. 2 came in, making 6,000 barrels of 30 gravity oil from 1,150 feet. On December 24th the Para i'ne brought in No. 3, a 15,000 barrel well, from the cap rock. This big flood of new production caused an immediate slump in prices and oil went down to 25 cents per barrel.
During the next few months Batson experienced one of the biggest booms that has been experienced in the Coastal fields. Earthern storage with ca- pacity of 3,500 to 4,000,000 barrels was constructed and by 1904 a great part of it was filled, as up to that time the field, not yet six months old, had produced 4,000,000 barrels of oil.
After the wells began coming in there was much danger from gas. At times the gas from the pro- ducing wells would hang like a fog just above the ground. One Houston oil man tells the story of crawling along the ground, through the fresh air which lay between the gas and ground in order to escape being poisoned by the gas. Three or four good whiffs of the gas were sufficient to asphyxiate a person unless that person got into fresh air im- mediately. It finally got so bad that it was burned off as it was separated from the oil. It is said that the wild geese confused at night by the great glare from the burning gas, would fly around and around the flame and fall to the ground at last, ex- hausted or even dead. One man built his house at night by the light of these great natural torches.
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