The Teapot Dome Scandal was one of earliest scandals in American business. Three naval oil fields, Elk Hills and Buena Vista Hills in California and Teapot Dome in Wyoming, was public land that were reserved by previous presidents to be emergency underground oil supplies to be used by navy only when regular oil supplies diminished.
The Teapot Dome oil field received its name because of a rock resembling a teapot that was located above oil-bearing land.
In June, 1920, Congress passed a bill that stated that Secretary of Navy would have power "to conserve, develop, use and operate same in his discretion, directly or by contract, lease, or otherwise, and to use, store, exchange, or sell oil and gas products thereof, and those from all royalty oil from lands in naval reserves, for benefit of United States."
In 1921 Albert Fall was appointed as Secretary of Interior by President Warren Harding.
Fall then convinced Secretary of Navy Edwin Denby to turn control of oil fields over to him.