Background

Tuesday, October 2, 2012

EARLY OIL-Nothing to write home about


First a word about the photo.  The original for this was sent to me by an old friend.  The original was in pretty bad shape but over the course of a couple of weeks I was able to do a pretty decent restoration on it.  Borger, TX - Circa 1926

The first time Texas coastal oil was documented was in 1543.  The Spanish Explorer, Luis de Moscoso Alvarado was shipwrecked between High Island and Sabine Pass and noticed a viscous substance floating on the water.  The only excitement stemming from his discovery was the fact he and his shipmates could use the substance to caulk their newly constructed boats.
As settlers began to move into Texas, they noticed oil seeps here and there.  And by 1874, oil or asphalt had been documented in 18 Texas counties.  Those early settlers had no idea they were sitting smack dab in the middle of a veritable “gold mine.”  Oil had no economic value and no one cared.  One has to think it was probably viewed as a giant pain in the neck to people trying to scratch out a living in the dirt.
In 1866, Lyne Taliaferro Barret made the first deliberate effort to drill for oil in Nacogdoches County.  He hit for a well that produced an unimpressive 10 barrels a day.  That brought about sporadic drilling by others but the practically non-existent  demand for oil squashed rapid development. 
When oil was discovered in Corsicana all interest in Nacogdoches was effectively killed.  In 1897, the Corsicana field sported an impressive 287 wells and birthed the first Texas refinery four years later.
But then, Pattillo Higgins’, belief in the existence of oil under the Big Hill salt dome near Beaumont hit pay dirt.  In spite of the failure of three test wells, Higgins and his investors persuaded mining engineer Anthony Lucas to drill.  Lucas began drilling in October of 1900 and continued throughout the winter.
The well came in on January 10, 1901 at 10:30 am with a gusher twice as high as the wooden derrick.  It took 9 days to cap the well that was to produce an incredible 75,000 barrels a day.  Spindletop validated Higgins’ belief in a big way.
That veritable “gold mine” that no one cared about became a reality with gold that was thick and black. Suddenly, everyone cared and cared deeply.  Just as it had happened in the 1849 California gold rush, people swarmed to the upper Texas coast.
 Texas oil as an industry had been born from a dome of salt and neither Texas or the world would ever be the same.

Source—Historic Photos of Texas Oil—Mike Cox  


Monday, October 1, 2012

Grasshoppers and a Pair of Striped Pants




In 1874, massive swarms of grasshoppers rode through the Great Plains on the Chinooks. Clouds of insects nearly a mile high, 100 miles wide and 300 miles long created mind numbing problems.

The constant drumming of their wings must have been the stuff insanity springs from, however, the devastation to crops and livestock were horrific and life changing. The ‘hoppers chewed crops and grass down to the bare ground. Trains mashed them on the rails until their greasy remains effectively stopped the engines’ ability to pull the train forward.The grasshoppers blanketed hog lots where pigs enjoyed veritable feasts, gorging themselves on insects to the point, when butchered later, their meat carried a pungent undertone of grasshopper.

Particularly hard hit by the infestation was the state of Nebraska where a quiet farmer and local magistrate named Lew Phillips was trying to raise a family in Greeley County. Surveying the destruction, Mr. Phillips commented “they have eaten everything and are now starting on the wagon spokes.” With that, he decided to relocate to southwestern Iowa with his wife, two daughters and infant son.

That baby boy was destined to become a household name in the petroleum industry. But as Frank Phillips grew, the only thing he knew for sure was he wanted to always wear striped pants to work. This determination was born when, as a young boy, he spotted a Creston barber wearing the flashy striped pants popular in that day. The dapper appearance of that barber spurred Frank to talk his way into an apprenticeship in a Creston barber shop where he eventually became one of the city’s most popular barbers.

An astute businessman, even at a young age, Frank soon owned his own shop where he manufactured and sold his hair tonic “Mountain Sage.” Touted as a cure for baldness, it was well received although basically useless for its’ intended purpose. So, it would seem the man who was to later become so instrumental in the development of the oil and gas industry got his start as a mere “snake oil” salesman.

He soon owned several barber shops and had caught the eye of the local banker’s daughter. After sweeping the daughter off her feet and down the aisle, Frank spent several years selling bonds for his new father in law. It was during one of these sales trips he encountered an old friend who filled his head with intoxicating stories of oil exploration in the Oklahoma Indian Territory.

Excited about the prospect, Frank, his younger brother L.E. and Frank’s father in law John Gibson began selling shares of stock in their new business, Anchor Oil and Gas Company. They opened an office, secured a driller and went “wildcatting” in Oklahoma. Their first venture, the Holland No. 1 was a strike! They were euphoric but the joy was short lived when the Holland proved to be merely a “pocket” which quickly ceased producing.

Then came 2 dry holes and discouragement set in. It seemed the oil and gas industry was only for the big and mighty like Standard. The Phillips brothers were going broke and potential investors were avoiding them like the plague. With their last little bit of capital they secured an 80 acre allotment from an 8 year old Delaware Indian girl named Anna Anderson. Anna’s allotment was nestled in the juncture of the Big and Little Caney rivers about 3 ½ miles north of Bartlesville, OK.

On September 6, 1905, the Anna Anderson No. 1 made its’ gushing arrival and by nightfall the area around the drill site was black and greasy with black gold. The strike was so rich in production it reportedly pumped out 250 barrels a day. The Phillips brothers were on their way. Lady Luck had smiled on them and the wheel of fortune had turned. They went on to punch 80 consecutive producing wells and suddenly enthusiastic investors were seeking them out.

They went on to become prosperous bankers as well as visionary oilmen. They also never forgot their humble beginnings. “Uncle Frank” was determined to always give back to the communities he was connected with in business. Happily, the “snake oil” rubbed off; this was not to be Frank Phillips’ legacy. And, it is reported he did, indeed, often wear striped pants to work.
Information for this article was pulled from the publication
Phillips—The First 66 Years (a public affairs publication of the
Phillips Petroleum Company)