Thursday, November 14, 2013

From the TSHA: Historic World War II pipelines sold

The Texas State Historical Association tells us that on this day in 1947 the Big Inch and Little Inch pipelines were sold by the US government to a private company - Texas Eastern Transmission Corporation, which was headquartered in Houston. Both pipelines also connected Houston with the northeast, which helped solidify Houston as the center of the oil and gas industry.

This might be an interesting read for both 2305 and 2306 students. 2305 students should consider the interplay of interests involved in the construction of the pipeline before and during WW2, and the decision about what to do with the pipeline once the war was over. 2306 students ought to think about the role government policies played in the development of the local area and the degree to which local power brokers were able to ensure that these policies benefited them, as well as the local area.

WW2 was very good for the local economy and the business interests located here.

Here's the note sent out by the TSHA:

On this day in 1947, the Big Inch and Little Big Inch, two strategic pipelines laid during World War II from East Texas to the Northeast, were sold by the U.S. government to a private company. Secretary of the Interior Harold Ickes realized as early as 1940 that shipment of petroleum to the Northeast by tankers would be impossible in time of war because of German submarines. In 1941, at Ickes's urging, oil industry executives began to plan the building of two pipelines. One, twenty-four inches in diameter, called the Big Inch, transported crude oil. The other, twenty inches in diameter, called the Little Big Inch, transported refined products. The Big Inch ran from Longview to Southern Illinois, thence to Phoenixville, Pennsylvania. Twenty-inch lines continued from there to New York City and Philadelphia. The Little Big Inch began in the refinery complex between Houston and Port Arthur and ended in Linden, New Jersey. Together the pipelines carried over 350 million barrels of crude oil and refined products to the East Coast before the war in Europe ended in August 1945.

And from the TSHA entry on the Big Inch and Little Inch Pipelines:


After the war, the pipelines became the focus of a clash of interest groups, with the oil and gas industry wanting to convert them to natural-gas pipelines and the railroad and coal industries opposing this. The Surplus Property Administration, given the task of determining future use, hired an engineering firm to study options; this study recommended that the pipelines be converted to natural-gas transmission. At the same time the United States Senate held hearings on their future use. In January 1946 the SPA recommended that first preference should be to continue use as in the war to ensure availability of the lines in a national emergency. However, by June 1946 the War Assets Administration announced an auction for the lines. All bids were ultimately rejected because no defined use preference had been established. After a strike by coal miners in November 1946 the WAA solicited bids to lease the lines, with Tennessee Gas and Transmission Company awarded a lease for natural-gas use to run from December 3, 1946, to April 30, 1947. Once it was established that the lines were viable for natural-gas transmission, the WAA again offered them for auction. The high bid of $143,127,000 came from a new corporation, Texas Eastern Transmission Corporation, formed by George Rufus and Herman Brown and their partners. The purchase was final on November 14, 1947. As of 1993, Texas Eastern had its headquarters in Houston.