Teapot Dome scandal Teapot Dome was regarded as the "greatest and most sensational scandal in the history of American politics". It damaged the reputation of the Harding administration, which was already severely diminished by its controversial handling of the Great Railroad Strike of 1922 and Harding's veto of the Bonus Bill in 1922. In the early 20th century, the U.S. Navy largely converted from coal to fuel oil. To ensure that the Navy would always have enough fuel available, several oil-producing areas were designated as naval oil reserves by President Taft. In 1921, President Harding issued an executive order that transferred control of
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