Final answer:
The old Texas economy was mainly based on oil and natural gas, which were significant exports. Other important resources included agricultural products like cotton and cattle ranching. These industries helped create the foundation of Texas's economic history and have remained important over time.
Step-by-step explanation:
The economy of old Texas was historically underpinned by a few key resources. These included oil and natural gas, which have long been significant exports and mainstays of the Texas economy. In addition, sectors such as agriculture with crops like cotton and cattle ranching played substantial roles in Texas's economic development. The extractive industries in Texas, particularly oil and natural gas production, dominated the economic landscape and enabled the state to thrive. Despite the evolution and diversification of the economy, these resources have remained foundational to the state's prosperity and continue to have great economic importance.
Oil, in particular, has been a major factor in the Texas economy. For many years, the state was the dominant oil exporter. This industry, alongside others like steel, metals, and heavy machinery, has consistently fetched significant prices on the market. The wealth generated from these resources has been a cornerstone of Texas's economic growth, although there are concerns about the depletion of petroleum reserves with few new fields being developed.
Agriculture was also a significant part of the early Texas economy, providing essential commodities such as tobacco, cotton, corn, and wheat. Along with natural resources extraction, agriculture helped shape the primary sector of local and national economies. Cattle ranching and farming benefited from advancements such as the expansion of railroads and better farm equipment by the 1870s, facilitating the success of larger farming operations through economies of scale.