Well known for its oil and gas production, Kermit was originally founded
by ranchers needing a supply hub in an isolated area of West Texas. An
1876 campaign by Col. Ranald S. Mackenzie helped rid the area of
Comanche Indians. Prompted by the state's policy for free use of its
land, ranchers quickly moved in. This population growth resulted in the
establishment of Winkler County in 1887. Competition between nearby
towns for the title of county seat lasted until 1910, when Kermit's
offer of free lots won it the designation. Though the town later
experienced a drought, which severely crippled the population, the
discovery of oil on ranchland owned by Thomas G. and Ada Hendrick in
1926 helped the town boom. Today, Kermit's economy is sustained by
ranching and oil and gas production.