Question

What did independent oil producers in Texas do when the government ordered them to limit production? Why did they choose to this course of action?

Answer 1

Explanation:

Before the discovery of oil, coal was used to fuel cars. Now that oil had been discovered , petroleum could be used. Another economic effect of oil was that it caused railroads to expand in Texas. Railroads expanding made transportation easier in Texas.

Answer 2

Small  and independent producers rebelled and did not obey the orders as they felt it favoured big oil companies

Explanation:

• In the 1930s, major discoveries of oil in Texas along with falling global energy demand pushed oil prices downward. The big oil firms requested intervention by 1931. The Texas Railroad Commission (TPRC) placed production restrictions on producers in the 1930s in an effort to encourage price rises
• Small producers thought this order favoured big and refused to obey it. "Hot oil" was developed and marketed by small  producers in breach of regulations. Such companies designed fake shut-off valves which appeared to to stop oil flow from the well , however he did not end. By night in vehicles without headlights, they smuggled oil off the oil field on back roads.
• The chaos was such that the governor had called upon the National Guard troops in order to maintain order. State and federal legislation finally controlled production and stabilized prices by 1935.