Edward L. Doheny prices were high. The Mexican Petroleum Company was the largest in Mexico, and Mexico was the largest oil producer in the world. In 1922 Albert B. Fall, U.S. Secretary of the Interior, leased the oil field at Elk Hills, California, to the Pan American Petroleum & Transport Company. Around the same time, the Teapot Dome Field in Wyoming was leased to Sinclair Consolidated Oil Corporation. Both oilfields were part of the US Navy's petroleum reserves. Neither lease was subject to competitive bidding. In 1924 rumors about corruption in the deals escalated into the Teapot Dome scandal. Doheny's reputation was somewhat
Oil in Oklahoma Oil in Oklahoma Oil in Oklahoma was first discovered, by accident, in 1859, near Salina, in the U.S. state of Oklahoma, in a well that had been drilled for salt. In 1907, before Oklahoma became a state, it produced the most oil of any state or territory in the United States. From 1907 to 1930, Oklahoma and California traded the title of number one US oil producer back and forth. Oklahoma oil production peaked in 1927, at 762,000 barrels/day, and by 2005 had declined to 168,000 barrels/day, but then started rising, and by 2014 had more than doubled to 350,000