Oil in Texas Essay

Words: 1549
Pages: 7
Open Document
How did the national demand for oil affect the local businesses in Texas, and how did Texas oil discoveries affect the national oil market? As the Texas oil industry grew, so did related industries. Some companies began producing oil by-products such as petrochemicals. Others produced pipelines, barrels, and oil-field equipment. As these companies began moving into oil towns such as Houston, Beaumont, and Port Arthur, they further expanded the local economies. Some moved into small towns, quickly turning them into cities. In North Texas the town of Wichita Falls grew from 8,200 residents in 1910 to about 40,000 in 1920.The state income also increased from just over $101,000 in 1906 to $5.9 million in 1929, largely due to the oil …show more content…
The industry is characterized by continuous cycles of spikes in demand, which precipitate an influx of actors, oversupply of oil, and eventual price collapse; the low prices discourage investment, leading to a supply shortage and again excess demand. Oil market actors – whether it is monopoly companies or cartels of countries – attempt to influence these cycles and shift the burden of price adjustment onto consumers, thereby maintaining their profit levels.
As the supply of oil grew in the pre- and post- World War II eras, vast reserves were found in developing countries and former colonies, which gave rise to an important dilemma over the ownership of the oil in the ground: Whom should own, and in turn, benefit, from the sale of the commodity – the entire population of the nation-state underneath which the reserves lie, or private enterprise and capitalists with the ability and skill to develop an oil sector for the domestic economy? As many former colonies gained independence in the period of the 1950s through the 1970s, and struggled to escape poverty, the governments chose the former option, and states took control of private. More than a century and a half after its discovery, oil continues to play an essential role in the global economy, despite fears that reliance on petroleum is fueling rapid climate change. Over the last decade, the price of oil has taken a roller coaster ride, rising steadily
Show More

Related Documents: Oil in Texas Essay

Texas Oil Industry Research Paper

The state of Texas has always been known for the oil and gas industry. Texas has many business driven economies that allows Texas’ state of security to continue to stay stable throughout the United States troubling time of non-economic growth. Some of these industries include the high tech industry, cattle, cotton, and most importantly, oil. Oil is such a major commodity in Texas because of the massive size of Texas. Texas is 801 miles long in size from north to south. There are four different parts…

Words 930 - Pages 4

Oil Boomed In The 1900's: Social Changes In Texas

Social Changes in Texas One of the most interesting things on the 1900’s was how oil boomed in Texas and people got rich really fast because of it. Oil is thick black gooey liquid from decomposed plants and animals. In Texas it made people rich really fast. Spindletop was one of the most popular oil places in Texas. How spindletop became popular was somebody was having a picnic on top of the hill and he could smell the oil and then he bought a rig and started drilling. By the time he found it spindletop…

Words 460 - Pages 2

The Texas Economy

The state of Texas and its economy has undergone many dramatic changes since the mid-1800s. The Texas economy adapted to each innovation as agriculture and ranching dominated the market only to be replaced by Oil booms throughout the state and again as highly advanced computer technologies and electronics manufacturing took over. After the economy continued to shift from one industry to the next, The North American Free Trade Agreement went into effect. This agreement significantly altered many aspects…

Words 830 - Pages 4

Corsicana Case Study

removed HTML --) Corsicana's history began soon after Texas became the 28th state in December 1845. Settlers in the area presented a petition to the Texas Legislature for part of Robertson County to be organized as a new county. Approval was granted, and Navarro County was created in 1846. The county's name was chosen to honor Jose Antonio Navarro, a signer of the Texas Declaration of Independence and the Constitution of the Republic of Texas who also played an important role in the drafting of the…

Words 803 - Pages 4

Dang: Odessa, Texas and Odessa-the Winningest High-school Essay

football team in Texas history. Odessa is not known to be a town big on dreams, but the Panthers help keep the hopes and dreams of this small, dusty town going. Socially and racially divided, its fragile economy follows the treacherous boom-bust path of the oil business. In bad times, the unemployment rate barrels out of control; in good times, its murder rate skyrockets. But every Friday night from September to December, when the Permian High School Panthers play football, this West Texas town becomes…

Words 725 - Pages 3

Texas Research Paper

The recorded History of Texas begins with the arrival of the first Spanish conquistadors (conquerors) in the region now known as Texas in 1519, who found the region populated by numerous Native American tribes. Their ancestors had been there for thousands of years. During the period from 1519 to 1848, all or parts of Texas were claimed by six countries: France, Spain, Mexico, the Republic of Texas, the United States of America—as well as the Confederate States of America in 1861–65. The first…

Words 693 - Pages 3

Petroleum and Motiva Oil Refinery Essay

Current Event and Youtube video Individual Project Texas Refinery Is Saudi Foothold in U.S Market Source: New York Times Due Date: April 8, 2013 Introduction: This article is about the Motiva oil refinery which is now the largest processor of gasoline, diesel, and many other petroleum products in the United States. This refinery is owned by Saudi Aramco and Royal Dutch Shell in a 50-50 partnership. Expanding the Port Arthur refinery in Texas is somewhat complicated during this period in time…

Words 524 - Pages 3

Texas Government Vs State Government

Cuong Phan GOVT-2306 Professor Sherry Sharifian 2 May 2017 Local Control in Texas In a state, there always exist two types of government which are state government and local government. The ability to issue new policies of state government and local government are significantly different. While the state government has over controlled the state, local government usually has to ask permissions from the state government to issues a new policy in a particular area. Local governments are far superior…

Words 655 - Pages 3

Captain Frank Hamer (Hay-Mer)

County, Texas. He grew up on the Welch Ranch in San Saba County. The family moved to Oxford, Texas in 1894. Hamer worked in his father's blacksmith shop and later as a wrangler on the ranch of Barry Ketchum. In 1905, while working as a cowboy on the Carr Ranch, Hamer helped to capture a horse thief. Afterwards, the sheriff recommended Hamer to the Texas Rangers. Hamer joined the Rangers in April 1906. He became part of Captain J. H. Rogers' Company C, patrolling the border in south Texas. In 1908…

Words 421 - Pages 2

Keystone Pipeline Research Paper

statement: “We are outraged by the lack of intergovernmental cooperation. We are a sovereign nation, and we are not being treated as such.” The Keystone XL pipeline is an expansion of the original Keystone pipeline that will run oil from Alberta, Canada to the Gulf Coast of Texas. Although the pipeline can provide economic benefits, it has cast a burden on Native American tribes. Native American tribes across the United States of America have taken non-violent actions to stop President Barack Obama…

Words 750 - Pages 3