A Tale of Three Cities: Lessons on Economic Development from the Birthplace of the Oil Industry

As oil- and gas-producing communities across the United States grapple with uncertain economic futures, valuable lessons can be drawn from the region where the modern petroleum industry was born.This report is the fifth in a series exploring the strategies US oil- and gas-producing regions may pursue in building economic resilience to a changing energy landscape. While oil- and gas-producing communities face both short- and long-term economic risks—from price volatility to the rise of alternative energy sources—relatively little policy attention has focused on strategies that can help these communities boost their economic resilience.Here, we present lessons learned from research and stakeholder interviews in the “Oil Region” in northwestern Pennsylvania, namely the region’s three largest cities: Oil City, Franklin, and Titusville. Once the hub of oil production in the United States (with an oil boom that began in 1859), the region saw a steady decline in oil activity across the twentieth century. The Oil Region’s ongoing economic evolution offers valuable insights both for communities whose economies today rely on oil and gas extraction, as well as for state and federal policymakers seeking to support similar communities’ economic development.