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It is 1898. In the New Mexico wilderness, Daniel Plainview (Daniel Day-Lewis) works his silver mine. When he breaks his leg when he finally finds the silver ore, he drags himself to town to sell it. He hires a crew, including a man caring for an infant son. When the silver mine plays out, Plainview discovers oil in the mine. He builds a pump and recreates himself as an oil man. The young father dies in a drilling accident. Planview adopts the young boy as his own and names him H.W. Nine years later, Plainview is a successful if still somewhat minor oil man. He has several productive wells around New Mexico and, with H.W. (Dillon Freasier), travels the state to buy the drilling rights to private property.

One night, a young man named Paul Sunday (Paul Dano) visits Planview's camp. Paul sells to Plainview information about his family's ranch in Little Boston, California, which he says has an ocean of oil underneath it. Plainview and H.W. travel to the Sunday Ranch and, while pretending to hunt quail, confirm what Paul told them. That night, Plainview negotiates with the Sunday patriarch, Abel (David Willis) and Paul's twin brother, Eli (Paul Dano). The price is $10,000 towards the building of the Church of the Third Revelation; Eli is a charismatic preacher and faith healer. He wants to pray to conclude the deal but Plainview refuses.

Plainview assembles his crew at the Sunday Ranch and builds the first derrick. He also buys almost all of the land surrounding the Sunday Ranch so he will have not only those drilling rights but also the right to build a pipeline to the ocean to circumvent the railroads and their shipping costs. Only the Bandy Ranch refuses to sell. Eli wants to bless the derrick before drilling begins but Plainview rebuffs him and instead has Eli's little sister, Mary (Sydney McAllister), dedicate the new endeavor. Mary and H.W. become playmates and Plainview buys her a new dress. At dinner one night, he tells Mary in front of Abel that her father will never hit her again. Eli and Plainview continue to irritate one another: Plainview resents that Eli solicits his workers to come to daily prayer services, and Eli replies that Plainview still owes hi $5000 of the promised amount. But when a worker dies while trying to free the drill, Plainview has Eli arrange for the funeral.

A few days later, the drill finally strikes oil. The escaping gases cause an explosion. H.W., who was watching the drill from the derrick, is deafened. He becomes sullen and untrusting. Shortly thereafter, a man named Henry (Kevin O'Connor) appears on Plainview's doorstep, claiming to be Plainview's half brother. Because he knows details about Plainview's family and hometown of Fond du Lac, Wisconsin, Plainview trusts him and takes him on as a worker. Plainview admits to Henry that he holds most people in contempt and uses them only to further his own goals. "I have a competition in me," he tells him. "I want no one else to succeed." He also admits that he can't do his work alone anymore. H.W. has looked through Henry's belongings and, jealous that Plainview has someone new in his life, attempts to burn down the house with Henry and Plainview in it. Plainview doesn't discipline H.W. but instead sends him away to a boarding school.

Soon Plainview has three thriving oil wells in the Little Boston area. Competitors try to buy them for $1 million but Plainview rejects the offer and their patronizing sympathy for H.W. When one competitor suggests Plainview should retire to take care of H.W., Plainview threatens his life. He and Henry go to the Bandy property to inquire about leasing a right-of-way to build the pipeline. After surveying the land, they swim in the ocean. When Henry doesn't seem to understand a reference about Fond du Lac, Plainview grows suspicious. That night, Plainview pulls a gun and forces Henry to confess: Henry isn't his brother, but knew him in Kansas. When the real brother died, Henry assumed his identity and made his way to California. Plainview kills Henry and buries him in a shallow grave on the Bandy property. The next morning, Bandy (Hans Howes) wakes Plainview and tells him that he can lease the land if he allows himself to be baptized at the Church of the Third Revelation. When Bandy reveals that he knows Plainview killed Henry, Plainview has no choice but to agree. He is baptized after he publicly and loudly announces that he is a sinner, and is warmly embraced by the church.

H.W. returns from the boarding school and Plainview warmly greets him. H.W. now has a sign language interpreter. He and Mary play together, and she learns sign language too. When they are married in the late 1920s, she signs the minister's sermon and marriage rites to him. Plainview has become a drunkard, even more misanthropic than ever. When H.W. announces his intention to move to Mexico and begin his own oil business, Plainview reveals that H.W. was never his biological son and disowns him. Sometime later, Eli visits him in the bowling alley Plainview has in his basement. As Plainview, like a beast, gnaws the cold steak leftover from his dinner, Eli reveals that old Bandy has died and that his grandson wants to sell the oil drilling rights to it in order to fund his goal of becoming a movie star -- with Eli as the broker for the deal. Plainview agrees but only if Eli will say that he is a false prophet and God nothing but a superstition. When Eli does so, Plainview reveals that he has already taken the oil from the Bandy property through drainage. Eli reveals that, despite a successful radio preaching career, he is broke due to bad investments. Plainview chases him around the bowling alley then bludgeons him to death with a bowling pin. When the butler comes to see what the commotion has been, Plainview announces to him, "I am finished" .



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