WyoHistory.org

The Online Encyclopedia of Wyoming History

salt creek oil field

salt creek oil field

The Mineral Leasing Act of 1920: The law that changed Wyoming's economic destiny

The Mineral Leasing Act of 1920 established the modern system by which oil and coal companies may lease federal land. This system has proven enormously beneficial to Wyoming’s state coffers since it was first enacted nearly 100 years ago. How this all came about is a story of early oil producers looking for a way around a presidential order and a highly contentious Supreme Court case, all with lucrative results for the state of Wyoming—and a stabilizing result for the industry.

The Oil Business in Wyoming

Oil seeps were reported often in the early 19th century in what later became Wyoming; it was sold, for example to Oregon Trail travelers for wagon lubricant. The first producing well in Wyoming Territory was drilled in 1883 at Dallas Dome southeast Lander. Perhaps the state’s best-known historic oil producing region is the Salt Creek Field, north of Casper, which was one of the world’s largest-producing fields in the 1920s. Oil remains an important part of Wyoming’s economy and culture today, and the state is ranked high among the top national producers.

The Teapot Dome Scandal

Although the Teapot Dome Scandal of the 1920s was named for a Wyoming rock formation resembling a teapot, the wrongdoers were not from the state. During the administration of President Warren G. Harding, oilmen Harry Sinclair and Edward Doheny bribed Secretary of the Interior Albert Fall to gain access to the naval petroleum reserves located at Teapot Dome in the Salt Creek field north of Casper in northern Natrona County. Fall was the first Cabinet official to be imprisoned for crimes committed during his time in office. Sinclair also served a jail sentence.

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