A chaotic beginning for new U.S. petroleum industry.
Discoveries at Pithole Creek in Pennsylvania created a headline-making boom town for America’s new oil exploration industry, which began with Edwin L. Drake’s 1859 well drilled at a creek near Titusville. As others drilled deeper into geological formations, an 1865 well at Pithole brought America’s earliest gushers, adding to the “black gold” fever sweeping the country.
The Drake well at Oil Creek led to a rush of exploration at other local streams in the remote Allegheny River Valley. In 1864, businessman Ian Frazier found oil at Cherry Creek. After making a quick $250,000, he looked for another opportunity in the hills and valleys providing oil to new Pittsburgh refineries making kerosene for lamps.
Frazier hired a diviner to search along Pithole Creek, which smelled like “sulfur and brimstone,” according to historian Douglas Wayne Houck. “He went to the creek and followed the diviner around until the forked twig dipped, pointing to a specific spot on the ground,” Houck noted in 2014. The young industry also had begin drilling its first “dry holes.”
Geysers of Pennsylvania Oil
Although Frazier’s United States Oil Company’s steam powered, cable-tool derrick first drilled a dry hole, a second well erupted spectacularly on January 7, 1865, producing 650 barrels of oil a day. The Frazier well, proclaimed by historian Houck as the first U.S. oil gusher, brought a flood of drillers and speculators to Pithole Creek. Two more wells blew in on January 17 and January 19, each flowing at about 800 barrels a day (invention of a practical blowout preventer was still half a century away).
The Titusville Herald proclaimed Pithole as having “probably the most productive wells in the oil region of Pennsylvania, Houck writes in his 2014 book, Energy & Light in Nineteenth-Century Western New York. Frazier’s United State Oil Company subdivided its property and began selling lots for $3,000 for a half-acre plot. Fortunes were being made and lost in the oil region. See the cautionary tale of the Legend of “Coal Oil Johnny.”
As the news spread through Venango County, “everyone came to the Pithole area to try their luck,” noted one reporter. Many were Confederate and Union war veterans. And as more successful wells came in, about 3,000 teamsters rushed to Pithole to haul out the growing number of oil barrels. It was hard to keep up. By May of 1865, the town is home to 15,000 people, 57 hotels, many homes, shops, and its own daily newspaper. It has the third busiest post office in Pennsylvania – handling 5,500 pieces of mail a day.
There were many reason behind the Pithole oil boom, including a flood of paper money at the end of the Civil War. Many returning Union veterans of had currency and were eager to invest — especially after reading newspaper articles about oil gushers and oil boom towns. Thousands of veterans also wanted jobs after long months on army pay .
First Oil Pipeline
As Pithole’s oil tanks overflowed (and dangerous tank fires increased), oil buyer and shipper Samuel Van Syckel conceived a solution now considered an engineering milestone. In 1865, his newly formed Oil Transportation Association put into service a two-inch iron line linking the Frazier well to the Miller Farm Oil Creek Railroad Station – about five miles away.
“The day that the Van Syckel pipe-line began to run oil a revolution began in the business. After the Drake well it is the most important event in the history of the Oil Regions,” Ida Tarbell noted about the technology in her History of the Standard Oil Company.
With 15-foot welded joints and three 10-horsepower Reed and Cogswell steam pumps, the pipeline transported 80 barrels of oil per hour – the equivalent of 300 teamster wagons working for ten hours. With their livelihoods threatened, teamsters attempted to sabotage the pipeline, until armed guards intervened.
Unfortunately for Syckel, Pithole oil storage tanks continued to catch fire even as the Frazier well production began to decline. Other wells were beginning to run dry when in 1866 fires spread out of control and burned 30 buildings, 30 oil wells and 20,000 barrels of oil. “Pithole’s days were numbered,” concludes historian Houck. “Buildings were taken down and carted off. A few people hung around until 1867.”
From beginning to end, America’s famous oil boom town had lasted about 500 days. Pithole was added to the National Register of Historic Places on March 20, 1973. Today, a visitors’ center added in 1975 is maintained by the Drake Well Museum. The center contains exhibits, including a scale model of the city at its peak and a small theater.
Volunteers “mow the streets” on the hillside so that tourists can stroll where the petroleum boom town once flourished. Among the oil region’s early — and most infamous — investors was John Wilkes Booth (learn more this failed oilman in the Dramatic Oil Company).
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Citation Information – Article Title: “Oil Boom at Pithole Creek.” Author: AOGHS.ORG Editors. Website Name: American Oil & Gas Historical Society. URL: https://aoghs.org/petroleum-pioneers/pithole-creek/. Last Updated: November 30, 2020. Original Published Date: March 15, 2014.