Teapot Dome

The Teapot Dome Scandal was a bribery incident that took place in the United States from 1921 to 1922, during the administration of President Warren G. Harding. Secretary of the Interior Albert Bacon Fall had leased Navy petroleum reserves at Teapot Dome in Wyoming and two other locations in California to private oil companies at low rates without competitive bidding. In 1922 and 1923, the leases became the subject of a sensational investigation by Senator Thomas J. Walsh. Fall was later convicted of accepting bribes from the oil companies and became the first Cabinet member to go to prison. No person was ever convicted of paying the bribes, however.

Before the Watergate scandal, Teapot Dome was regarded as the "greatest and most sensational scandal in the history of American politics". The scandal damaged the public reputation of the Harding administration, which was already severely diminished by its controversial handling of the Great Railroad Strike of 1922 and the President's veto of the Bonus Bill in 1922.

In the early 20th century, the U.S. Navy largely converted from coal to fuel oil. To ensure that the Navy would always have enough fuel available, several oil-producing areas were designated as Naval Oil Reserves by President Taft. In 1921, President Harding issued an executive order that transferred control of Teapot Dome Oil Field in Natrona County, Wyoming and the Elk Hills and Buena Vista Oil Fields in Kern County California from the Navy Department to the Department of the Interior. This was not implemented until 1922, when Interior Secretary Fall persuaded Navy Secretary Edwin C. Denby to transfer control.

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