Paramount will start work on “There Will Be Blood,” a period drama loosely based on the 1927 Upton Sinclair novel “Oil!,” for Par Classics and the new Miramax. Daniel Day-Lewis and director Paul Thomas Anderson will team this spring on the pic. Anderson wrote the script and used as his basis Sinclair’s expose of the seamy side of the drilling business in Southern California when it became the equivalent of the gold rush. Day-Lewis will play a prospector who buys the oil rights to a family’s ranch, and then hits a major pocket of crude. The story then turns into a tale of greed and faith, as the prospector realizes the American dream and is destroyed by it.