Life from the Oil Patch: "The Acadiana Story"

Lafayette Oil Hisrory - by David DiTucci and Steven Wiltz

The first commercial discovery of oil in Louisiana occurred in 1901 at the Heywood well near Jennings. Following this discovery, southwest Louisiana was the center of oil extraction in the state. Several small strikes were made in Lafayette and the surrounding area. Local entrepreneurs also began to organize oil companies, such as Martin Oil Company, and these firms continued to drill in the area. However, by 1911 the wells in this portion of the state had dried up and none of the many prospectors made any new discoveries in the southern part of the state. The industry therefore began to focus its attention on northern and central Louisiana.
Though further development in the Lafayette area did occur , many decades passed before southwest Louisiana regained its status as the focal point of the Louisiana oil industry.(2)

An oil boom following the discovery of the Anse la Butte near Breaux Bridge in St. Martin Parish during the 1900's and 1910's increased Lafayette's commercial activity. However, an agricultural downturn following World War I severely depressed the economy of southwestern Louisiana and slowed the advance of modernization. The Great Depression made the economy worse and the area's reliance on agriculture came into question. Lafayette, a city founded (originally as Vermillionville) on agriculture, could no longer depend on a singular economic base with a tendency of fluctuation. However, people were unwilling to spend what little money they had, and without investment capital businesses began a downward spiral which resulted in further economic loss. Federal assistance aided in preventing the complete economic collapse of the city, but the resolution of the hard-working Louisiana people saved the state from total destitution.(3)

Superior Oil made a major discovery at Bosco, in Acadia Parish near Mire, in 1932 which brought the oil industry to Lafayette and the Cajun country. Lafayette was close to the new fields opened due to new technology in the southern Louisiana marshes. Oil companies first arrived in Lafayette during the Depression when firms began to locate offices in the city with the opening of the Bosco Field. Though Lafayette did not have adequate office space, the Chamber of Commerce promoted the city and a majority of oil companies operating in Louisiana occupied downtown Lafayette buildings by 1936.(4)

The Bocso site set the tone for interaction between the oil industry and the local population. Local sharecroppers, seeing the potential for income and steady pay, moved into the developing oil fields. Initially, money went to the landowners where the petroleum for mineral rights. The oil companies then began to hire sharecroppers who lost their lands by overextending themselves on loans. Although the work was both difficult and dangerous, it offered a better opportunity that the typical existence of a perpetually debt-ridden sharecropper. Superior Oil also aided in general economic growth, as they not only provided housing for their employees but free natural gas for the homes. The service and support industries that grew around the Bosco field fed the economies of the surrounding area. A curious cultural side effect to this initial development saw the Cajun customs of the area
began to decline as the "Americans" brought modernization and new ways of thinking along with their economic blessings. For example, one of the earliest and most dramatic changes dealt with the region's Francophone heritage. The Cajuns began to move away from the Cajun French language, the home dance, the accordion, and the hard-fighting ways while at the same time being brought to the modern age with new wealth (shown by the new appliance common to the Cajun household) and education. While these changes came about slowly durng these early years of oil exploration and extraction, they would continue as the demand for petroleum products caused an expansion in the industry.(5)

Demand for oil increased during World War II and in the years after the war. The United States military required vast amounts of oil and petroleum products in order to win the war. Also, following the war, American demand for consumer goods, including automobiles, increased, resulting in a boom for the oil industry. The number of automobiles increased by sixty-five percent within five years after the war. An attempt to deter reliance on foreign oil also accelerated domestic growth. Offshore development away from the protection of land began when Kerr-McGee opened a well in the Gulf of Mexico south of Morgan City on 14 November 1947 in the Ship Shoal Block 32 Field. The Frank Phillips, an old naval vessel purchased by Kerr-McGee after the war, paved the way for offshore drilling by making the first discovery out of sight of land. Commercial fishermen complained about possible negative effects of the industry. They soon found that the oil industry was beneficial to fishing, as the platforms and equipment became havens for offshore seafood. Kerr and McGee took a chance in the unpredictable waters and it paid off, launching a multi-billion dollar industry.(6)

Texas companies, the biggest players in the game, needed a center of operations in Louisiana. Houston was home to large petroleum companies such as ........ As oil exploration and discovery increased in the south Louisiana, the Houston based companies wanted offices and facilities closer to the oil fields. These companies initially considered Lake Charles because the oil exploration was concentrated in the areas between Houston, Beaumont, and Lake Charles. Because of this concentration, a refinery was built in Lake Charles around 1950. However, the companies found that the city was too close to their operations in Houston to be viable yet not close enough to the new oil fields being discovered further east in the Lafayette, Morgan City, and Houma areas. What they needed was a more centrally located city in Louisiana with adequate facilities for large-scale operations and the potential future growth.(7)

In the search for an optimal city in which to house their base of operations, Opelousas emerged as a front-runner. Located near the Bosco Oil Fields, Opelousas was large enough to accommodate the offices for petroleum companies. However, there were several reasons for not locating the offices in St. Landry Parish. First the people of Opelousas were unwilling to invest money on the necessary office space. Apparently, the town did not entirely appreciate all that had come along with the burgeoning oil industry. Operating from the oil boom of the 1930s in the Bosco fields, roughnecks came and went with the fortunes of the
industry and left a trail of bad credit in the city once the boom ended. They also had a history of violent behavior that local residents seemed unwilling to tolerate again. A provincial attitude also prevailed in Opelousas, whereby the residents were not accustomed to change from the outside, regardless of whether or not that change could be beneficial to the city. The experience with the city of New Iberia was similar. Though closer to the coast, New Iberia was smaller than Lafayette and companies faced obstacles to locating there just as they had in Opelousas.(8)

Oil companies then turned to Lafayette, where many of their offices had already been located. In fact, the prospect of Lafayette as an oil center first came up in 1905 in the city's newspaper. By the 1930s, many oil companies occupied offices in downtown Lafayette, but many of these structures could not adequately accommodate the fast growing industry. Furthermore, the Kerr-McGee offshore platform in 1947 spurred further offshore development resulting in increasing need for a central location to conduct business in the area. Almost by default Lafayette, also known as the Hub City, became the prime location.(9)

Lafayette proved to be the ideal location for petroleum companies to operate their business facilities. Although not exactly close to the coast, the Hub City was easily accessible to coastal areas. It was a center for rail traffic, had decent waterways, and connected to surrounding areas by a good system of highways and roads. Another appealing factor about Lafayette was the city's size. With the major oil companies seeking to locate offices in the area, Lafayette offered ample entertainment, sufficient office space, and the potential for growth that would be necessary to the expanding petroleum industry. Finally, and perhaps most importantly, provincialism, so dominant in other communities, was not prevalent in Lafayette and therefore not detrimental to the economy of the Hub City. Still, it would take the ingenuity and dedication of one man to ensure the relationship between the oil
industry and the Hub City.(10)

The one man most instrumental to the development of Lafayette as the center of the Louisiana oil industry was Maurice Heymann. The astute businessman had already established a reputation as a successful entrepreneur, philanthropist, and civic leader by the time offshore production became prevalent. Realizing that downtown Lafayette could not adequately support the type of infrastructure that major oil companies looking to locate in the Hub City required, Heymann formulated a plan to develop a second business district in Lafayette. His idea was to create a center for the burgeoning oil industry. Heymann's vision was to
build a set of structures that could house multiple companies, all in proximity of each other. He already possessed property, located between South Louisiana Industrial Institute (now University of Louisiana at Lafayette) and Pinhook road, that was large enough for this type of development. In 1952, Maurice Heymann set his plan into motion.(11)

Heymann's idea of locating the offices of many different oil companies close to each was indeed appealing to those in the petroleum industry. The companies often conferred and did business with one another. It would be much easier to walk across the street and talk with another oil man than to try to set meetings in Houston or out in the field. Now Heymann needed only to convince these oil companies that his Oil Center in Lafayette could give them what they wanted and needed. In order to do this, he needed to take some chances. Many other investors shied away from leasing property to oil companies, mindful of the 'boom
and bust' cycle that characterized the petroleum industry. Maurice Heymann didn't shy away from the risks of investment and began building the Oil Center without first having signed contracts to occupy the buildings, though various companies verbally expressed an interest. Once a few major companies signed on, others followed, and the Oil Center quickly became a success.(12)

One interesting aspect related to the emergence of Maurice Heymann's Oil Center was an organization called the Petroleum Club. The oil companies moving into Heymann's center began to realize the need for a meeting place in order to have business discussions. Heymann liked the idea and subsequently formed the Petroleum Club of Lafayette. Club stipulations required that members derive at least eighty percent of their income from the oil industry in order to join. The Petroleum Club contained all of the amenities enjoyed by corporate employees such as a lounge, bar, banquet hall and recreation room. The club was an instant
success and became one of the benefits of working in the oil industry in Lafayette.(13)

The members of the Petroleum Club of Lafayette as a group eventually had their own impact. In 1955, in an effort to promote the oil industry in the region, the club created a bi-annual, non-profit exposition. The Louisiana Gulf Coast Oil Exposition (LAGCOE) quickly grew into a well known exposition that solidified Louisiana's position as a major player in the petroleum industry. The exposition also helped to bring into Lafayette other companies and continued to encourage the growth of the industry in the Hub City.(14)

Maurice Heymann had a significant goal when he developed his Oil Center. He wanted to provide Lafayette with a second business district away from the downtown area. In this effort he succeeded in providing quality office space to out of town oil companies wishing to use Lafayette as a center of their operations. Heymann also saw a weakness in Lafayette's agriculturally based economy. His efforts to lure oil companies into the city went a long way in diversifying Lafayette's economy. To this day, the Oil Center remains the center of operations for Louisiana's offshore oil industry.(15)

The Louisiana petroleum industry continued to grow in the 1960s and 70s, despite the Arab oil embargo in 1972. In fact, the average number of active rigs remained the same following the embargo. After a general economic downturn in 1974-5, the mining sector, of which oil extraction is a part, experienced substantial growth. Other industries also saw gains in the years before and after the embargo out of proportion with the rest of the state and comparable areas in Texas. Due to rising energy costs, during the mid- to late- seventies, the Lafayette area showed an average 8.1 percent annual real income growth. During that
period, 23 percent of the Lafayette population derived its income directly form the oil industry, which directly affected the growth of other industries. Though Lafayette experienced significant growth due to petroleum, the region lacked the economic diversification necessary to sustain growth.(16)

During this period, Lafayette and Louisiana became not only the leader in oil extraction, but many advances were made in support industries. For example, Louisiana became a world leader in sea-going support vessel production. One reason for Louisiana's rise in the world economy was the incredible and well-documented work ethic of the people of Acadiana. Many executives have commented on the willingness of the people of the Lafayette area to work harder than most Americans. A U.S. Census Bureau report from 1987 states that the average Acadian worker is up to 56 percent more productive than the average American, though the figures actually take a great deal of explaining with regards to what was measured. However, not even an incredible work ethic could save Louisiana from the drastic downturn of the 1980s.(17)

Up until the mid-1980s, the oil and gas industry in Louisiana continued to progress, seemingly without an end in sight. The industry employed an incredible amount of people statewide, including 16,500 in Lafayette alone. Workers had been moving into the city in droves and bringing their families, which in turn enlarge the local schools, hospitals, and other related infrastructure. A sense of complete confidence pervaded the Louisiana economy. Unfortunately, in response to an international oil crisis instigated by O.P.E.C. nations in the previous decade, the oil industry in Louisiana came to an abrupt halt. A general decrease in petroleum consumption combined with an increase in production from foreign oil exporters caused reduction of oil prices and sent Louisiana's industry into a vicious downward spiral.(18)

The unemployment rate in the Lafayette area, which had never rose above four percent during boom cycle, exploded to over fourteen percent in 1986. Thousands lost their jobs and migrated out of the state. Many had no prospects for the foreseeable future. There were more bankruptcies in this time period than during the Great Depression. This serious economic recession continued on throughout the remainder of the decade and into the early 1990s.(19)

In the mid-1990s, Lafayette experienced a resurgence in the oil industry. Along with increasing tourism, the economy of Lafayette rebounded. Local leaders were influenced to diversify the economy and curtail dependence on the oil industry to prevent further tragic economic downturns. The outlook is now optimistic. Today's oil and gas industry in Lafayette exhibits greater responsibility. The community of Lafayette has again learned not to rely on a single industry. With the twenty-first century upon us, Lafayette is poised to continue progressing and expanding in a more responsible manner.(20)

Endnotes

1. Joseph R. Conlin, The American Past, Part 2: A Survey of American History Since 1865 , 4th ed. (Fort Worth, TX: The Harcourt Press, 1993), 448.

2. Historical Highlights for the LA Oil an Gas Industry: A Remarkable Past - An Exciting Future , http://www.lmoga.com/history.htm accessed 3 April 2002; Lafayette Daily Advertiser , 13 September 1902, 11 October 1905, 6 September 1902,4 November 1903; Thomas D. Hayes, History of Petroleum in Southwestern Louisiana: Discovery and Early Industrial Development (M.A. Thesis, University of Southwestern Louisiana, 1971) 78; Assumption Pionee r (Napoleonville, La) 20 March 1920.

3. Carl Brasseaux, History of Lafayette , unpublished manuscript.

4. Barry Jean Ancelet, "Rednecks, Roughnecks, and the Bosco Stomp: The Arrival of the Oil Industry in the Marias Bouleur," Attakapas Gazette 22 (Spring 1987) 1:29-33; Andrew M. Garber, "Maurice Heymann and the Development of the Lafayette Oil Center," Louisiana History 40 (Summer 1999) 3:327-54.

5. Carl Brasseaux, interview by David DiTucci and Steven Wiltz, 2 February 2002; Ancelet, 29-33.

6. Garber, 338-9.

7. "Historical Highlights;" Edwin A. Vice, "The Grand Old Lady of the Gulf," Best of Lafayette 2 (September 1987) 3:16-19.

8. Garber, 338-41.

9. The population of Opelousas was comparable to that of Lafayette at the time; Garber, 340-41; Interview with Carl Brasseaux, 2 February 2002. On provincialism in Louisiana and its effects on the economy, see Lee J. Melton Jr., "Some Factors Affecting the Economic Development of Louisiana," Louisiana Since the Longs: 1960 to Century's End , The Louisiana Purchase Bicentennial Series in Louisiana History IX, ed. by Michael L. Kurtz (Lafayette, La: University of Southwestern Louisiana Center for Louisiana Studies, 1998), 163-78.

10. Lafayette Advertiser , 11 October 1905.

11. In 1950 Lafayette's population was 33,541; Brasseaux, History of Lafayette ;Garber, 340-1.

12. Garber, 342-52.

13. Daily Advertiser , 6 October 1953; Brasseaux, History of Lafayette ; Garber, 342-3.

14. Garber, 345-346.

15. Ibid, 349-350.

16. Garber, 352; Brasseaux, History of Lafayette .

17. David P. Manuel and Robert B. Grambling, Energy and Economic Growth in Lafayette, La.: 1965-1980 (Lafayette, La.: University of Southwestern Louisiana, 1983) 96-97, 116-19, 143-4.

18. Lawrence S. McKenzie III et. al., Land Use and Socioeconomic Status and Trends in the Barataria-Terrebonne Estuarine System , BTNEP Publication No. 23 (Thibodaux, La.: Barataria-Terrebonne National Estuary Program, 1995) 31; "Acadiana's Incomparable Work Ethic," Acadiana Profile 14 (3rd Quarter 1991) 6:42-44.

19. Brasseaux, History of Lafayette; Russell Long, "Senator Russell Long on the Oil and Gas Industry," The Best of Lafayette (Novermber-December 1986) 9-10; Larry Wall "Louisiana Plays Key Role In Meeting U.S. Energy Needs." Acadiana Profile 14 no. 3 (2nd Quarter 1990): 25-6.

20. John R. Kemp, "Lafayette: City of the Year," Louisiana Life (Winter 1998-9) 57-9.

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