It wasn't until the beginning of the 20^th century that farming and industry began to change and add to the economic complexity of the Panhandle.

Because of the inconsistent nature of Panhandle weather from year to year farming was neither profitable nor attractive until the early 1900's when dry-farming techniques, modern irrigation and other technological advances and milder weather ensured reasonable chances for increased farm production. By about 1917 wheat and cotton were added to beef as the foundation of Panhandle agriculture. World War I and a good economy stimulated these markets.

Oil and gas were added to the resources from the Panhandle when Millard Nobles and several associates founded the Amarillo Oil Company. Based on research produced by the geologist Charles N. Gould, drilling began. Finally, on May 2, 1921 the Gulf-Burnett No. 2 became the first oil producing well in the Texas Panhandle. Shortly thereafter in 1922 the Dixon Creek Oil Company made a major oil discovery in Hutchinson County. This vast reserve produced 100,000 barrels a day. This discovery helped to stimulate the economy of other areas of the Texas Panhandle. Towns like Borger grew so fast that law enforcement was severely lacking. Borger was so lawless that at one point martial law had to be declared. Other cities such as Lefors and Dumas were more fortunate and avoided the chaos. The early 1920's were good economic times in the United States and the availability of cheap oil and gas along with the new automobile industry caused the Panhandle to lead Texas in highway development. Amarillo became the center of commerce in the Tri-State area with the Rural Road Act, improved road and highway systems and widespread ownership of automobiles. The economy was so strong that some towns actually prospered during the early Depression. Towns and cities whose economies were based on agriculture suffered the worst. Poor land management, the drought and lower demand for agricultural products, along with high winds that helped remove the topsoil were the main causes. The Texas Panhandle was the center of the dust bowl. In the mid to late 1920's prospects for the alleviation of water source problems of the Panhandle were considered.

As early as 1926 Alson Asa Meredith made a life's work in promoting the harnessing of the Canadian River as a water supply for the region. The Canadian River Municipal Water Authority was formed in 1953 and Sanford Dam was constructed. This project created the 821,000-acre feet water source Lake Meredith. Today the resulting lake bears Meredith's namesake and serves the Panhandle with recreational activities and drinking water for many of the towns and cities. Plans for desalination of the water are still pending.

It is well known that in tough economic times political realignment can occur. This was true in the 1930's Panhandle. In the 1932 Presidential Election Franklin Delano Roosevelt carried the Texas Panhandle with 87 percent of the vote. This advantage increased in 1936 as he carried 96 percent of the vote. Federal aid programs lent much to the ailing Panhandle economy. The Rural Electrification Act of 1937 brought electricity to Deaf Smith County and others. Federal programs also financed the Palo Duro State Scenic Park project. The remnants of these projects can still be seen in such places as local post offices where many of the wall murals were painted by local artists subsidized by federal programs. The Great Depression continued into the early 1940's and was officially ended when the federal government began its massive armament programs shortly before World War II.

Because of expansionist threats in Europe and the western Pacific by the Japanese and Germans the Army Air Corps began building training fields around the Panhandle. Airfields in towns like Dalhart, Pampa, Childress and Amarillo began training pilots and their crews for eventual war. Other defense related facilities were added later.

In 1942 the Pantex Army Ordinance Plant was built in Carson County just east of Amarillo. The plant's mission was to build bombs and artillery shells for the war effort. In 1943 the Exell Helium Plant was built in southern Moore County. Its mission was to produce helium to be used in the Manhattan Project, which was a research and development program aimed at producing and testing the world's first atomic weapons. The helium was also used in the large blimps that were used to escort supply convoys to Asia and Europe. These programs and others like them served to stimulate the Panhandle economy. Along with war demands on the agricultural output favorable weather conditions helped to boost agricultural production beyond any previous expectation. Much of this increased economic activity was retained beyond the Armistice into the 1950's because of the Cold War.

In 1950 the Atomic Energy Commission assumed control of the Pantex Army Ordinance Plant. Assembly and distribution of nuclear warheads was added to its production. In 1951 the Amarillo Army Airfield was reopened as the Amarillo Air Force base. Its mission was to train technicians for the new Air Force and with its extra long runways to serve as a base for the Strategic Air Command's B-52 bomber wings. The airbase was a significant factor in the growing Amarillo economy. Other new industries were added in the late 1950's and early 1960's.

In 1960 Nebraska cattle buyer Paul Engler recognized the significance of Panhandle resources in the cattle industry. Engler used the Panhandle's large, open spaces, suitable climate and massive grain sorghum resources to his advantage in creating the feedlot industry. The city of Hereford became the center of the feedlot industry in the Panhandle and benefited with the increase of support industries like transportation. This feedlot culture soon spread across the Panhandle. It also lent stimulus to the creation of many packing plants in the area such as IBP and the American Beef Packers, which opened in Cactus in the early 1970's. The IBP facility east of Amarillo is one of the largest facilities in the world. The American Beef facility was short lived and soon sold out to Swift Fresh Meats, which in turn was acquired by Monfort in the 1980's.

The Panhandle has always been able to lessen the boom-bust cycle of the economy because of its diversity and its ability to adapt to changing economic circumstances. In 1968 the deactivation of the Amarillo Air Force Base was a severe blow to the Panhandle economy, especially Amarillo where many residential areas were virtually depopulated. This severe economic blow was turned in to somewhat of an advantage when the State of Texas bought the base and converted it into the Texas State Technical Institute. With its wide choice of courses, TSTI was tasked with providing the Panhandle area with a well-trained and educated work force. The old airbase was also used to the advantage of the City of Amarillo. Its extra long runways were ideal for converting the airbase into a port of entry for international air travel into the United States. The Amarillo Airport was given International status in the late 1980's and serves the Tri-State area.

The adaptability of the Panhandle economy was tested in the mid-1980's with an increasing shift in international economic behavior. With a rise in imported consumer items and a decrease in oil prices recession forced Panhandle businesses to adapt to more wide ranging methods to boost local economies. The economic development corporation concept has been a significant factor in helping local businesses and in bringing more businesses into the Panhandle, particularly to Amarillo.