March 18 marks one of the most significant dates in Mexico's history, commemorated for the impactful oil expropriation conducted by President Lázaro Cárdenas del Río. On this day back in 1938, Cárdenas made the bold move of nationalizing the oil industry, taking control from foreign companies and ensuring national sovereignty over one of the country’s most precious resources.
The oil expropriation is not merely a historical event but rather the cornerstone of Mexico's identity and sovereignty. Initially dominated by international companies like Royal Dutch Shell and Standard Oil, the industry operated without regard for local labor rights or contributions to the national economy. Faced with a growing movement for labor rights, including the formation of the Sindicato de Trabajadores Petroleros de la República Mexicana (STPRM) in 1935, Cárdenas recognized the urgent need to reclaim control over Mexico's natural resources, prompting him to take decisive action.
On March 18, 1938, he announced the expropriation of the oil industry, transferring assets including refineries, drilling equipment, and pipelines from various foreign companies to the Mexican state. This monumental step led to the establishment of Petróleos Mexicanos (PEMEX) just months later, on June 7, 1938, positioning the state-owned entity as central to Mexico's energy production.
The initial expropriation was met with economic sanctions from foreign nations, particularly the United States, United Kingdom, and the Netherlands. These sanctions threatened to disrupt Mexico's oil export capabilities. Nonetheless, the Mexican people rallied around PEMEX, organizing notable support efforts—including donations of money, jewelry, and livestock—to bolster the national oil company during these challenging times.
Over the decades, PEMEX not only became the backbone of the national economy but also symbolized Mexican sovereignty. From 1940 to 1980, oil revenue was pivotal for national development. Yet, as the global economy evolved, challenges began to plague PEMEX. The 1980s saw declining revenues due to falling oil prices, compounded by issues of corruption and mismanagement.
Significantly, the economic and political reforms of 2013 under President Enrique Peña Nieto expanded the oil sector to private investments, altering the established state monopoly. This change, though controversial, aimed to stimulate growth and attract foreign capital to rejuvenate the industry.
With the election of Andrés Manuel López Obrador (AMLO) as president in 2018, the political tide turned once more. He pledged to restore the state's dominance over energy by halting new oil contracts with foreign companies and revitalizing PEMEX. His administration launched ambitious projects, such as the construction of the Dos Bocas refinery, aiming to achieve self-sufficiency for gasoline production. Despite these initiatives, criticisms have emerged about their efficacy and the heavy financial burdens placed on PEMEX, which now faces dire fiscal challenges.
Recent indicators show alarming trends, with Mexico's oil production plummeting to its lowest levels in 45 years, raising questions about sustainability and energy strategy. Claudia Sheinbaum, the current president, introduced PEMEX's work plan for 2025-2030, targeting production goals of 1.8 million barrels daily. She also emphasized agreements to stabilize gasoline prices at 24 pesos per liter to mitigate inflationary pressures.
The annual commemoration of the oil expropriation not only reflects Mexico's historical challenges but also serves as a battleground for contemporary discussions on energy sovereignty and economic independence. This year, the 87th anniversary of the oil expropriation will feature parades and public celebrations across the country, particularly highlighting its significance within Mexico's cultural identity.
Planned celebrations include road closures and festivities slated for March 18, 2025, from 07:00 to 11:00 hours around Veracruz with multiple streets closed for the parade. Residents are advised to use alternate routes to navigate the city during the event.
While the day commemorates past achievements, it’s also met with the harsh reality of current struggles, calling attention to the nation’s reliance on fossil fuels amid the global shift toward renewable energy sources. This juxtaposition of legacy and future holds significant relevance for Mexico, as it continues to chart its energy policies amid changing market dynamics and environmental responsibilities.
Although the Day of the Oil Expropriation is not recognized as a public holiday, its importance resonates with the Mexican people, entwined with notions of national pride, resilience, and debates surrounding energy governance.
CLaudia Sheinbaum, during her morning press conferences, highlighted, “There are six refineries part of our National Refining System, plus two more, allowing us to meet fuel demands, ensuring PEMEX serves national sovereignty.” The significance of PEMEX remains central to discussions on national policy and energy independence as the nation steps forward, reflecting on its rich history and asserting its future.
