Mexican oil expropriation

The Mexican oil expropriation (Spanish: expropiación petrolera) (also petroleum expropriation, petroleum nationalization, etc.) was the expropriation of all oil reserves, facilities, and foreign oil companies in Mexico on March 18, 1938. It took place when President and General Lázaro Cárdenas declared that all mineral and oil reserves found within Mexico belong to the government.

It is one of the Fiestas Patrias of Mexico, celebrating the date when the President, General Lázaro Cárdenas, declared that all oil reserves found in Mexican soil belonged to the government, following the principle stated in the Article 27 of the Constitution of 1917. This measure caused an international boycott of Mexican products in the following years, especially by the United States, the United Kingdom, and the Netherlands.

The political support of labor unions and the founding of Petromex (now called Pemex) immediately after taking power by President Lazaro Cardenas, were the proximate events closest to the Petroleum Expropriation.

In 1924, after several failed strike efforts and break-ups by the Mexican Army, a strike began in Tampico against the refinery "El Aguila", in which workers emerged triumphant and achieved recognition from the management for the labor union and reached a collective bargaining agreement.

On August 16, 1935, the Petroleum Workers Union of Mexico (Sindicato de Trabajadores Petroleros de la República Mexicana) was formed and one of the first actions was the writing of a lengthy draft contract transmitted to the petroleum companies demanding a 40-hour working week, a complete paid salary in the event of sickness, the payment of 65 million pesos towards benefits and wages. The foreign oil companies refused to sign the agreement, and counter offered with a payment of 14 million pesos toward wages and benefits.

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