The states don't have any revenue to speak of either, and the individuals involved have no interest in developing those things except philanthropy (not something the planter class is known for).
There are individuals who might do so, Washington Duke might still live in the South (namesake of Duke University), Thomas Jefferson was known for some of his donations, etc. There could also be a Confederate equivalent of Rockefeller in Texas depending on how the oil discoveries are handled.
OTL circumstances vs. TTL's are very different, and the likelihood of the discovery occuring on "schedule" approaches zero. This was a random event, in game terms, not one triggered by a specific date.
There were accidental discoveries of oil in Texas well before 1901, it's more of a question of profitability and how much expansion can be done using money from whichever source decides to invest first.
And the CSA taking Kentucky and securing it would be more than somewhat different.
We've been over this repeatedly, I'm happy to leave it at 'we agree to disagree'.
There's a difference between "speculating" and "engaging in wishful thinking". I'm not saying a better outcome than OTL (for the boll weevil) is automatically the latter, but it leans there.
Necessity being the mother of invention means a desperate CSA is going to try all sorts of solutions to get rid of the weevils. DDT might be among them, fire ants might work too. There is some level of talent in the CSA and agricultural research would be a focus for funding. As this is alternate history many things are possible, each of us can advocate for a different argument and we can still both be wrong about it.