In 1898, Daniel Plainview is a silver prospector mining a potentially precious ore vein from a pit mine hole in New Mexico. In the process of dynamiting the lode, he falls and breaks his leg. He saves a silver sample, climbs out of the mine and drags himself to an assay office, where he receives a silver and gold certificate claim. In 1902, he discovers oil near Los Angeles and establishes a drilling company. Following the death of a worker in an accident, Daniel adopts the man's orphaned son. The boy, H.W., becomes his nominal business partner, allowing Daniel to present himself to potential investors as a family man.