On this day in 1901, a drilling derrick at Spindletop Hill near Beaumont, Texas, produces an enormous gusher of crude oil, coating the landscape for hundreds of feet and signaling the advent of the American oil industry. The geyser was discovered at a depth of over 1,000 feet, flowed at an initial rate of approximately 100,000 barrels a day and took nine days to cap. Following the discovery, petroleum, which until that time had been used in the U.S. primarily as a lubricant and in kerosene for lamps, would become the main fuel source for new inventions such as cars and airplanes; coal-powered forms of transportation including ships and trains would also convert to the liquid fuel.
Crude oil, which became the world’s first trillion-dollar industry, is a natural mix of hundreds of different hydrocarbon compounds trapped in underground rock. The hydrocarbons were formed millions of years ago when tiny aquatic plants and animals died and settled on the bottoms of ancient waterways, creating a thick layer of organic material. Sediment later covered this material, putting heat and pressure on it and transforming it into the petroleum that comes out of the ground today.
In the early 1890s, Texas businessman and amateur geologist Patillo Higgins became convinced there was a large pool of oil under a salt-dome formation south of Beaumont. He and several partners established the Gladys City Oil, Gas and Manufacturing Company and made several unsuccessful drilling attempts before Higgins left the company. In 1899, Higgins leased a tract of land at Spindletop to mining engineer Anthony Lucas. The Lucas gusher blew on January 10, 1901, and ushered in the liquid fuel age. Unfortunately for Higgins, he’d lost his ownership stake by that point.
Beaumont became a “black gold” boomtown, its population tripling in three months. The town filled up with oil workers, investors, merchants and con men (leading some people to dub it “Swindletop”). Within a year, there were more than 285 actives wells at Spindletop and an estimated 500 oil and land companies operating in the area, including some that are major players today: Humble (now Exxon), the Texas Company (Texaco) and Magnolia Petroleum Company (Mobil).
Spindletop experienced a second boom starting in the mid-1920s when more oil was discovered at deeper depths. In the 1950s, Spindletop was mined for sulphur. Today, only a few oil wells still operate in the area.
Also on This Day, 2008 World’s cheapest car debuts in India
On this day in 2008, at the New Delhi Auto Expo in India, Tata Motors debuts the Nano, billing it as the world’s cheapest car: The anticipated price tag is around $2,500. Tata, India’s largest automaker, called the four-door, bubble-shaped mini-vehicle (it was just 5 feet wide and 10 feet long) the “People’s Car” and declared that it would be a vehicle for families who previously hadn’t been able to afford a car. (At the time, it wasn’t uncommon to see an entire family precariously packed onto a single motorbike.)
The Nano was originally scheduled to go on sale in October 2008; however, production delays arose because of a land dispute in West Bengal, where the car’s production plant was being built. The company opted to move its production facilities to another part of India and the Nano officially went on sale across the country in April 2009. The basic model carried a starting price of approximately $2,000 (not including taxes) and came without a radio, air conditioning, airbags, power steering or power windows. It had a body made of plastic and sheet metal and a 32-horsepower, 624cc two-cylinder rear-mounted engine, and it could reach speeds of 65 miles per hour. In another nod to cost-cutting, the car had just one windshield wiper.
Tata received more than 203,000 pre-orders for the Nano–a strong number, especially considering that at the time there were only about nine cars for every 1,000 people in India. However, because Tata was only able to produce an initial run of 100,000 Nanos, the cars’ first owners were chosen by lottery. The Nano was initially sold only in India, although Tata said it eventually intended to launch the car in other parts of the world.
Tata Motors is part of the Tata Group, one of India’s largest and oldest business conglomerates. And Tata does not just make inexpensive cars: In March 2008, the company purchased the venerable British brands Jaguar and Land Rover from the Ford Motor Company for $2.3 billion.
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