Economy

A common name for oil is petroleum.  Petroleum is an important resource in the Southwest. It can be hard to find. Scientists use rocks to figure if is present. If it is present then the get an enormous drill and dig it up so they can use it. Once they get to the oil, they use special pipes to get it out. A common sight associated with oil is a Pump jack. Texas and Oklahoma produce the most oil. The oil found in the Southwest is used throughout the US.

During the early 1900s, the oil industry started to boost the economy of the Southwest, attracting many entrepreneurs. After oil was discovered in 1901 at Spindletop hill near Beaumont, Texas, lots of companies wanted to take the opportunity of expanding into the oil industry. Since oil is very valuable, the companies wanted to get the first grab at oil.

Before World War II, there was little manufacturing in the Southwest. When the U.S. entered the war, it created a need for new products, which created a need for factories in the Southwest. These factories produced tools for the soldiers fighting in the war.

In the early twenty-first century, technology and trade have become a  big industry for the region. The use of new technology and scientific discoveries has boosted trade with other countries. The U.S. trades a lot of goods with Mexico, and many of these products are shipped through the Southwest.

Some products can be made from petrochemicals, which are chemicals made from petroleum. Many everyday items are made from petrochemicals, such as paint, pens, sneakers, and clothing. This helps the Southwest’s economy because items that people use across the globe are made from oil drilled from the Southwest.

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