Pattillo Higgins had begun a well on Spindletop in 1900, but ran out of money to continue drilling for oil. Higgins went to Gates for funds to continue; Gates obliged. The Texas Fuel Company, founded by Joseph S. Cullinan, had little experience in drilling wells and producing crude oil. As such, they founded the Producers Oil Company on January 17, 1902 as an affiliate of The Texas Fuel Company. Investors like Gates invested "certificates of interest" to the sum of around $90,000 and Gates would invest another $590,000 in the company prior to it becoming known as Texaco. His investment entitled Gates to 46 percent of the company's stock. When Spindletop came in the next year, Gates was already in control of Port Arthur's docks, its refinery and the railroad needed to get the oil to market.