By: Mary Fjelstad, Senior Research Analyst
America’s recent energy boom isn’t a first for the country, and neither is the resulting drop in oil prices. In 1900, Texas produced approximately 0.84 million barrels of oil per year. In 1901, Captain Anthony Lucas drilled a prospecting well at Spindletop Ridge near Beaumont, Texas. HIs efforts yielded spectacular results and by 1902 Spindletop produced an estimated 17.5 million barrels of oil; giving birth to U.S. companies such as Texaco, Gulf Oil Co., Sun Oil Co., and Exxon Mobile (formerly Humble). As a result of the massive increase in supply, prices fell to a record low of $0.03 per barrel - cheaper than the cost of a cup of water in some oil boom towns.