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History of Oil in El Dorado

Current-day El Dorado is a town filled with rich history. It was created from 160 acres of land that were under the control of Matthew Rainey, who arrived in the area in 1830 and is noted as the area’s first citizen and businessman. El Dorado was designated the county seat of Union County in the early 1840s.

The community had a strong agricultural economy, which was joined by the timber industry following the arrival of railroads during the 1890s. But it was the 1920s that gave way to the area’s claim to fame—the oil industry.

Oil exploration came to the region as early as 1914. Traces of oil were found in early 1920. While it was not enough for commercial use, these small findings kept the interest in southern Arkansas oil alive. One of the most notable of the area’s oil investors was Dr. Samuel T. Busey, a physician turned geologist who found himself in the oil business in 1915. He arrived in El Dorado in 1920, immediately setting to work on finding his black gold.

Busey’s best investment occurred when he took over the Mitchell-Bonham Well, which was positioned just over a mile southwest of El Dorado. The well had produced some oil during initial drilling, but it was on January 10, 1921 that the well made history. At 4:30 p.m., as a modest crowd of spectators gathered, the well exploded with a mixture of gas, oil and water. The view was clear from town, and the oil boom in El Dorado began.

Within just a few weeks of the gusher, the quiet, rural town of 4,000 surged to an estimated population of 15,000. El Dorado was overflowing with people. It was at this time that the downtown began to take shape, as homesteads and storefronts began lining the city sidewalks. Many of these original buildings still stand in the historic downtown district —past remnants of El Dorado’s exciting oil history.

Today, El Dorado is nicknamed, “the oil capital of Arkansas,” the “City of Gold” and “Arkansas’ Original Boomtown.” The oil industry continues to play an important role in the local economy, with numerous companies dedicated to oil and gas exploration, refining and production.

For more information on El Dorado’s history, including its oil boom and the ensuing years, contact the South Arkansas Historical Foundation: 870-862-9890 or info@soarkhistory.com. The foundation’s offices are located at 422 N. Jackson in El Dorado.