page_title: Texas oil boom
section_title: Government and politics
hierarchical_section_title: Texas oil boom / Effects / Government and politics
caption_attribution_description: English: The Texas Governor's Mansion in Austin, Texas, United States was constructed in 1855 in the Greek Revival architecture style. The building was designated a Recorded Texas Historic Landmark in 1962, listed on the National Register of Historic Places on August 25, 1970, and designated a National Historic Landmark on December 2, 1974.
context_page_description: The Texas oil boom, sometimes called the gusher age, was a period of dramatic change and economic growth in the U.S. state of Texas during the early 20th century that began with the discovery of a large petroleum reserve near Beaumont, Texas. The find was unprecedented in its size and ushered in an age of rapid regional development and industrialization that has few parallels in U.S. history. Texas quickly became one of the leading oil-producing states in the U.S., along with Oklahoma and California; soon the nation overtook the Russian Empire as the top producer of petroleum. By 1940 Texas had come to dominate U.S. production. Some historians even define the beginning of the world's Oil Age as the beginning of this era in Texas.
  The major petroleum strikes that began the rapid growth in petroleum exploration and speculation occurred in Southeast Texas, but soon reserves were found across Texas and wells were constructed in North Texas, East Texas, and the Permian Basin in West Texas.
context_section_description: One of the most significant developments in Texan government resulted from the creation of a state oil production tax in 1905. The revenue generated by the tax made funds available for development in the state without the need for income taxes and similar revenue mechanisms adopted in other states. In 1919, tax revenue from oil production surpassed $1 million ($14.7 million in today's terms) and in 1929 it reached $6 million ($89.3 million in today's terms). By 1940, the oil and gas industry accounted for approximately half of all taxes paid in the state.
  Politics in Texas during the early 1900s was defined by a spirit of Progressivism. Oil money funded the expansion of the highway system and the educational system. In general, however, the attitude toward business was laissez-faire. There were few regulations on issues such as minimum wages and child labor.
  The permissive attitude toward business did not always extend toward large corporations. A lack of venture capital in the state became a significant problem with the early industry. Civic and business leaders, and even ordinary citizens, worried that the influx of capital from outside the state would lead to a loss of political power, revenue, and business opportunities. This sentiment led to a series of antitrust lawsuits by the state Attorney General starting in 1906. The lawsuits easily succeeded and limited the ability of outside investors, most notably Standard Oil, to gain control of the state oil companies.
  The mistrust of Standard Oil was partially the result of a suspicion toward carpetbaggers, which ironically was also the source of skepticism regarding labor unions. Union organizers were frequently seen as attempting to support a Northern agenda of promoting opportunities for African Americans at the expense of the white population. Because of the situation this created, labor reform was slow to develop. Despite the anti-union sentiments, groups like the International Oil Workers Union attracted membership and held some influence in the industry and state government.
caption: The Texas Governor's Mansion
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