Feds regulate "hot" oil

Overproduction? What overproduction?
(Photo courtesy of the American Oil & Gas Historical Society)

(Texas Day by Day) On this day in 1935, the Connally Hot Oil Act became law. The act came about as a result of the federal government's attempts to deal with the problem of "hot" oil--petroleum produced in violation of state and federal quotas and regulations.
In the early 1930s the overproduction of oil, largely a result of the East Texas oil boom, was adversely affecting the oil market. Continued