An oil discovery in 1922 transformed Caldwell County's economy

After six dry wells and heavy debt, Davis's seventh well — Rafael Rios No. 1 — gushed in on August 9, 1922. The field ran about twelve miles long and two miles wide. By December 1924 it was producing 43,000 barrels of oil per day.

Davis sold his leases in 1926 to Magnolia Petroleum for $12 million. He used much of that money to benefit Luling — donating a golf course, community facilities, and founding the Luling Foundation for agricultural education. Before the oil boom, the county had relied almost entirely on cotton and cattle.