Additionally the economy had diversified sufficiently that, though petroleum was still the largest sector by the end of the war, the business community in the state was truly diverse. By the end of the war Texas was one of the leading industrial states and the population had become predominantly urban.

The second world war created tremendous demand for petroleum and a variety of products that Texas was in a unique position to provide. Texas remained largely rural until World War II though the success of the petroleum industry rapidly expanded the economy with heavy industry of many types taking root. This era of financial success lasted approximately 50 years finally coming to an end as Texas's forests were decimated and the Great Depression dropped prices.

The development of railroads in the eastern part of the state during the mid-19th century led to a boom in lumber production in the 1880s. The Rio Grande valley in South Texas was home to a large palm tree forest when Spaniards first arrived, though today very little of it remains. began in the mid-19th century, and was even used as a refuge by runaway slaves and other fugitives. The Big Thicket was mostly uninhabited until heavy settlement from the U.S. In particular the Big Thicket region, just north of Houston and Beaumont, has historically been home to the most dense woodlands. The densest forest lands lie in the eastern part of the state. They today continue to play an important role economically and environmentally in the state. The vast woodlands of the region, home to many varieties of wildlife when Europeans first arrived, provided major economic opportunities for early settlers. The forests of Texas have been an important resource since its earliest days and have played an important role in the state's history.

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