🤠Texas History Unit 10 – Economy and Industry in Texas

Key Economic Milestones

• Texas gained independence from Mexico (1836) established a new republic with its own economic policies and trade relationships
• Discovery of oil at Spindletop (1901) transformed Texas economy and led to rapid industrialization
  • Attracted major oil companies and investors to the state
  • Spurred growth of related industries (pipelines, refineries, petrochemicals)
• Great Depression (1929-1939) had severe impact on Texas economy
  • Falling prices for cotton and oil led to widespread unemployment and poverty
  • New Deal programs (Civilian Conservation Corps, Works Progress Administration) provided some relief and investment in infrastructure
• World War II (1939-1945) brought economic boom to Texas
  • Increased demand for oil, gas, and agricultural products to support war effort
  • Expansion of military bases and defense industries created jobs and stimulated growth
• NAFTA (North American Free Trade Agreement) passed in 1994 increased trade and economic integration with Mexico and Canada
  • Eliminated tariffs and trade barriers among the three countries
  • Boosted exports of Texas products (electronics, chemicals, machinery) to growing markets

Natural Resources and Their Impact

• Oil and natural gas deposits are abundant in Texas (Permian Basin, Eagle Ford Shale) drive the energy industry
• Fertile soil and diverse climate enable production of wide range of crops (cotton, corn, wheat, fruits, vegetables)
• Cattle ranching thrives on the state's vast grasslands and prairies supports major beef industry
• Timber resources (pine forests in East Texas) supply materials for construction and paper products
• Mineral resources (limestone, sand, gravel) are used in building materials and infrastructure projects
  • Texas leads the nation in cement production
• Gulf Coast provides access to marine resources (seafood, shipping lanes) and recreational opportunities (beaches, fishing)
• Renewable energy potential (wind, solar) is being increasingly harnessed to diversify the state's energy mix

Major Industries and Sectors

• Energy sector (oil, gas, coal, renewables) is a key driver of Texas economy
  • Includes exploration, production, refining, and distribution of energy products
  • Supports a wide range of related industries and services
• Manufacturing is diverse and includes high-tech products (electronics, aerospace, chemicals)
  • Texas is a leading producer of computers, semiconductors, and telecommunications equipment
• Agriculture remains a significant part of the economy, with major commodities including:
  • Cotton (Texas is the nation's leading producer)
  • Cattle (Texas has the largest beef cattle herd in the U.S.)
  • Other livestock (poultry, hogs, sheep, goats)
  • Crops (corn, wheat, sorghum, rice, peanuts, sunflowers)
• Service sector is large and growing, with strengths in:
  • Healthcare and medical research (Texas Medical Center in Houston is the world's largest)
  • Finance and banking (Texas is home to several major banks and financial institutions)
  • Tourism and hospitality (attractions include national parks, historical sites, theme parks)

Agricultural Development

• Early settlers introduced new crops and farming techniques to Texas (cotton, corn, wheat)
• Cattle ranching emerged as a major industry in the late 1800s
  • Iconic cowboy culture and cattle drives to markets in the North
  • Breeds adapted to Texas climate (Texas Longhorn, Hereford)
• Railroads expanded access to markets and enabled growth of commercial agriculture
• Mechanization (tractors, harvesters) and irrigation increased productivity and efficiency
• Government programs (Agricultural Adjustment Act, soil conservation) helped farmers during the Great Depression and Dust Bowl
• Research and development led to new crop varieties and improved livestock breeds
  • Texas A&M University played a key role in agricultural innovation
• Diversification of crops and value-added processing (cotton gins, food processing plants) strengthened the agricultural economy

Energy Production and Policies

• Oil boom in the early 1900s transformed Texas into a major energy producer
  • Discoveries at Spindletop, East Texas Field, and Permian Basin
  • Growth of major oil companies (Texaco, Gulf Oil, Exxon) and pipelines
• Natural gas production increased in the mid-1900s as a cleaner alternative to coal
  • Construction of pipelines to transport gas to markets and industries
• Coal mining expanded in the 1970s and 1980s to meet growing electricity demand
  • Lignite coal deposits in East and Central Texas
• Renewable energy (wind, solar) has grown rapidly in recent decades
  • Texas is the nation's leading producer of wind energy
  • Solar power is expanding due to falling costs and supportive policies
• State policies have encouraged energy development and investment
  • Tax incentives and regulatory streamlining for oil and gas production
  • Renewable Portfolio Standard requiring utilities to use renewable energy
  • Deregulation of electricity markets to promote competition and innovation

Economic Challenges and Solutions

• Boom-and-bust cycles in the energy industry can lead to economic instability
  • State has diversified its economy to reduce dependence on oil and gas
  • Rainy Day Fund (created in 1988) helps stabilize state budget during downturns
• Environmental concerns (air and water pollution, climate change) require balancing with economic growth
  • State has implemented regulations to reduce emissions and protect natural resources
  • Investments in clean energy and conservation can create jobs and improve sustainability
• Globalization and trade competition can impact Texas industries and workers
  • State has promoted exports and foreign investment to expand market opportunities
  • Workforce development programs help workers adapt to changing job requirements
• Demographic shifts (population growth, aging, diversity) create both challenges and opportunities
  • State must invest in education, healthcare, and infrastructure to support growing population
  • Diversity can spur innovation and creativity in the economy
• Income inequality and poverty persist despite overall economic growth
  • State has implemented programs to support low-income families (Medicaid, CHIP, TANF)
  • Efforts to improve education and job training can help reduce poverty and increase economic mobility

Technological Advancements

• Development of hydraulic fracturing (fracking) and horizontal drilling revolutionized oil and gas production
  • Allowed extraction of previously inaccessible shale oil and gas reserves
  • Led to resurgence of Texas energy industry in the 2000s
• Advances in renewable energy technologies (wind turbines, solar panels) have made them more cost-competitive
  • Improved efficiency and reliability of renewable energy systems
  • Enabled large-scale deployment of wind and solar power across the state
• Precision agriculture uses data and technology to optimize crop yields and resource use
  • GPS mapping, soil sensors, and drones help farmers make informed decisions
  • Can reduce water and chemical use while improving productivity
• Automation and robotics are transforming manufacturing and other industries
  • Increases efficiency and precision in production processes
  • Requires workforce training to operate and maintain advanced equipment
• Biotechnology and life sciences are a growing sector in Texas
  • Includes medical research, pharmaceuticals, and agricultural biotechnology
  • Benefits from strong research institutions and funding support

Future Economic Outlook

• Texas economy is expected to continue growing faster than the national average
  • Diverse industries, favorable business climate, and population growth drive expansion
• Energy sector will remain important but may face challenges
  • Global shift towards clean energy could impact demand for oil and gas
  • Texas is well-positioned to be a leader in renewable energy and carbon capture technologies
• Technology and innovation will be key drivers of future growth
  • Texas has a strong tech ecosystem with major companies and startups
  • Investments in education and research can help develop new technologies and industries
• Trade and globalization will create both opportunities and challenges
  • Texas is a major exporter and benefits from access to global markets
  • Competition and trade disputes could impact some industries
• Workforce development will be critical to meeting future job needs
  • Education and training programs must adapt to changing skill requirements
  • Attracting and retaining talent will be important for Texas businesses
• Infrastructure investments will be needed to support growing population and economy
  • Transportation, water, and energy systems must be maintained and expanded
  • Public-private partnerships can help fund and deliver major projects