Mexico's president, enrique peña nieto (image credit: afp/getty images via @daylife) on monday, mexican president enrique pena nieto of mexico introduced a plan for opening up his country’s languishing but potentially huge oil and natural gas reservoirs to investment and development by foreign companies. Mexico became the first country to nationalize its oil industry and create a national oil company (today known as pemex) in 1938.
The mexican oil expropriation (spanish: expropiación petrolera) was the nationalization of all petroleum reserves, facilities, and foreign oil companies in mexico on march 18, 1938 in accordance with article 27 of the constitution of 1917 , president lázaro cárdenas declared that all mineral and oil reserves found within mexico belong to the nation, ie, the federal government. On march 18, 1938, mexican president lázaro cárdenas signed an order that expropriated the assets of nearly all of the foreign oil companies operating in mexico he later created petróleos mexicanos (pemex), a state-owned firm that held a monopoly over the mexican oil industry, and barred all foreign oil companies from operating in mexico. 590 the empire struck back: sanctions and compensation in the mexican oil expropriation of 1938 noel maurer the mexican expropriation of 1938 was the first large-scale non-communist.
Nevertheless, the oil nationalization deprived mexico of foreign capital and expertise for some twenty years mexico's oil output expanded at an average annual rate of 6 percent between 1938 and 1971 production increased from 44 million barrels in 1938 to 78 million barrels in 1951.
What mexico got with cárdenas' confiscation in 1938 was oil wells that produces for only a few years and physical plant that wore out after some years the two decades of capital shortage lasted longer than the oil wells and the physical plant the workers of mexico suffered greatly from that shortage of sources of capital.
The empire struck back: the mexican oil expropriation of 1938 10-108 1 abstract the mexican expropriation of 1938 was the first large‐scale non‐communist expropriation of for‐ mexican oil production declined monotonically between 1921 and 1933. Mexico’s oil nationalization of 1938 essay sample the nationalization of oil companies under the presidency of lazaro cárdenas is perhaps one of the most widely discussed instances in mexican history, along with independence and revolution. The empire struck back: sanctions and compensation in the mexican oil expropriation of 1938 after the nationalization, fdr, no friend of the oil men, responded to their lobbying by deploying sanctions to defend the companies’ interests between 1941 and 1946 washington imposed.