The Southwestern Historical Quarterly, Volume 50, July 1946 - April, 1947 Page: 13
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Texas and the Oil Industry
to 359,000 barrels in 1924. In January, 1926, however, it was
rediscovered by the completion of a well from a new deep sand
on the southeast flank of the field, and a new orgy of drilling
followed. Production from the field increased rapidly to a new
all-time high of over 21,250,000 barrels in 1927.
The Spindletop of 1901 had been followed by Sour Lake,
Saratoga, Batson, Humble, North Dayton, and other fields. The
one of 1926 was followed by Hendricks, Yates, Salt Flat, Van,
Darst Creek, and other fields; and oil production in the Pan-
handle increased from some 1,287,000 barrels in 1925 to over
40,000,000 barrels in 1940. In both instances the operators were
confronted with serious overproduction, the net result of which
was decreased prices for crude oil. In the Panhandle, however,
the additional results of a major expansion of pipe line facil-
ities and regulatory activities of the Railroad Commission
were operative. During the year 1928 the commission undertook
the proration of oil from the Hendricks, Howard-Glasscock,
and Yates pools: It has been estimated that had Winkler and
Pecos counties been allowed to flow their maximum potential
production, Texas would have been producing more than 2,000,-
000 barrels per day the week of December 29, 1928, instead of
slightly more than 700,000 barrels per day. Proration was
extended to include the Darst Creek Field in 1929 and the Pan-
handle in 1930.
This tremendous increase in oil production was accompanied
by an unparalleled expansion in the natural gas industry, par-
ticularly in Southwest Texas and the Panhandle, where the
completion of many wells had demonstrated the existence of
tremendous gas reserves. The first major gas pipe line in
either of these areas was that constructed by the Houston Pipe
Line Company in 1925 from Live Oak County to Houston and
extended to the Mirando area in 1926. At about the same time
the Houston Gulf Gas Company also constructed its line from
Southwest Texas to Houston. At the end of 1926 gas from thir-
ty-seven counties in Texas was being delivered to 113 towns and
cities and the combined daily open flow capacity of all gas wells
was over three billion cubic feet. Increased facilities for han-
dling, active development of gas areas, and a greater demand
for this fuel resulted in the serving of 442 towns and cities in
1928 with gas from forty-nine counties. The total daily potential
of the wells at the end of that year was nearly fifteen and
one-half billion cubic feet.
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 50, July 1946 - April, 1947, periodical, 1947; Austin, Texas. (texashistory.unt.edu/ark:/67531/metapth101117/m1/29/: accessed April 26, 2018), University of North Texas Libraries, The Portal to Texas History, texashistory.unt.edu; crediting Texas State Historical Association.