Oilfield discovered in 1940 after 57 years of expensive “dry holes.”
Pawnee Royalty Company drilled the first Nebraska oil well on May 29, 1940, in Richardson County…after desperate state legislators offered a $15,000 bonus.
After more than a half century of dry holes, on May 29, 1940, Nebraska’s first commercial oil well was completed in the far southeastern corner of the state. The Pawnee Royalty Company made the discovery just west of Falls City in Richardson County.
“The first publicized report of oil in Nebraska had been an 1883 newspaper account of a ‘vein of petroleum’ discovered in the same county,” explains a Nebraska historical marker.
“Over the next 57 years the search for oil consumed thousands of dollars, and hundreds of wells were drilled throughout Nebraska,” adds the marker placed by the Nebraska Petroleum Council. “Traces of oil were reported at various locations across the state, but Nebraska did not have a producing well until 1940.”
State offers Oil Bounty
Eager to become an oil-producing state, the Nebraska legislature had offered a $15,000 bonus for the first oil well in Nebraska to produce 50 barrels daily for 60 consecutive days.
In 1939 and 1940 the Pawnee Royalty Company had two encouraging but unsuccessful drillings near Falls City. A third well, Bucholz No. 1, was begun near the marker on April 22, 1940. On May 29 the well began producing and averaged 169-1/2 barrels daily for the first 60 days.
The discovery easily qualified for the Nebraska Legislature’s $15,000 bonus. Richardson County enjoyed an oil boom for three years. The Bucholz No. 1 was located just five miles east of the “vein of petroleum” reported in 1883.
Western Nebraska Oil
Modern Nebraska petroleum production comes from the southwestern panhandle – where a 1949 discovery well produced 225 barrels of oil a day from a depth of 4,429 feet. This oil discovery ended 60 years of unsuccessful searching in western Nebraska, according to another roadside historical marker. Marathon Oil completed the well, the Mary Egging No. 1, five miles southeast of Gurley in Cheyenne County.
The marker, on U.S. 385 between Sidney and Gurley, reports that interest in oil in western Nebraska first occurred in 1889, near Crawford, in the northwest corner of the Panhandle.
“The first recorded drilling operation there took place in 1903 near Chadron, also in the northern part of the Panhandle,” the marker explains. “In 1917, the first exploratory well to drill in the southwest Panhandle, near Harrisburg, failed,” it adds. “Oil searchers sunk many other dry test wells in western Nebraska until success came in 1949.”
By 1966, wells in the western Nebraska oilfields produced more than 216 million barrels of oil. “The pioneer efforts in this area have resulted in a major contribution to the economy of the state,” concludes the Nebraska State Historical Society.
New technologies, including horizontal drilling and hydraulic fracturing, today bring renewed activity to the state. Independent oil and natural gas companies are testing the potential of the Niobrara Shale in Colorado, Wyoming – and southwestern Nebraska.
The American Oil & Gas Historical Society preserves U.S. petroleum history. Become an AOGHS supporting member and help maintain this energy education website and expand historical research. For more information, contact firstname.lastname@example.org. © 2020 Bruce A. Wells.
Citation Information – Article Title: “First Nebraska Oil Well.” Author: Aoghs.org Editors. Website Name: American Oil & Gas Historical Society. URL:https://aoghs.org/petroleum-pioneers/first-nebraska-oil-well. Last Updated: May 25, 2020. Original Published Date: May 26, 2013.