While a small agricultural village existed on the site, it was really in 1914 with the arrival of the oil companies in the Buchivacoa District that Dabajuro became a town. World War I drove a need for oil, and while a number of companies prospected for oil in the area, it was Standard Oil who developed the resource. However, by 1932 with the worldwide depression, Standard Oil was gone, and the local economy had collapsed. It was only with the renewed need for oil in World War II that the oil companies returned. However by 1960 the oil fields of Lake Maracaibo had lured the oil companies away, and Dabajuro was again economically abandoned. It was only gradually after the completion of the Falcón-Zulia Highway from Maracaibo to Coro, that the city began to grow again on a more stable basis.