So dear to Mexican society is the legacy of Lázaro Cárdenas’s 1938 expropriation of the country’s oil sector that it is still celebrated annually as a national holiday. Perhaps it is no surprise, then, that new liberalizing constitutional reforms of the sector, which promise to reopen the sector to foreign investment, have been controversial.
Petróleos Mexicanos (Pemex), the Mexican national oil company, was given a monopoly over the sector subsequent to the expropriations. Mexico’s oil has historically been in conventional, easy to access reservoirs and, as such, Pemex has proven relatively stable, if inefficient, in its production of such resources.
