The History of the Energy System in Mexico

Introduction

The history of the energy system in Mexico is a fascinating journey that reveals the country’s economic and political development. From the early discoveries of oil to the recent energy reforms, each stage has had a significant impact on Mexican society. In this article, we will explore the most important milestones and how they have shaped Mexico’s current energy landscape.

Early Years of the Energy System in Mexico

Initial Discoveries

The first oil discoveries in Mexico occurred in the late 19th century. These discoveries marked the beginning of a new era, where oil began to play a key role in the country's economic development.

Early Oil Companies

In the early 20th century, several foreign companies began exploiting Mexico’s oil resources. Among the most prominent were the Mexican Eagle Petroleum Company and the Standard Oil Company. These companies played a crucial role in the early industrialization of Mexico’s energy sector.

The Nationalization of Oil

Political and Social Context

During the 1930s, Mexico was going through a period of intense political and social upheaval. Tensions between the government and foreign oil companies culminated in a series of labor conflicts and demands for greater benefits for Mexican workers.

Oil Expropriation of 1938

On March 18, 1938, President Lázaro Cárdenas announced the expropriation of all foreign oil companies. This historic act nationalized the oil industry and laid the foundation for the creation of Petróleos Mexicanos (PEMEX).

The Founding of PEMEX

Objectives and Initial Challenges

PEMEX was founded with the aim of managing and developing Mexico’s oil resources. From the beginning, it faced numerous challenges, including a lack of advanced technology and the need for technical training for its workers.

Growth and Expansion

Over the decades, PEMEX grew and became one of the most important oil companies in the world. Its expansion included the construction of refineries, pipelines, and petrochemical plants, solidifying Mexico as a key player in the global energy market.

The Electricity Industry in Mexico

First Electricity Companies

The electricity industry in Mexico began to develop at the end of the 19th century with the creation of the first private electricity companies. These companies provided electricity to major cities and fostered industrial growth.

Nationalization of the Electricity Industry

In 1960, the Mexican government nationalized the electricity industry, creating the Comisión Federal de Electricidad (CFE). This entity was responsible for the generation, transmission, and distribution of electricity across the country.

Energy Reforms of the 1990s

Liberalization of the Electricity Sector

During the 1990s, Mexico implemented reforms to liberalize the electricity sector. These reforms allowed private investments in electricity generation, promoting competition and improving sector efficiency.



Foreign Investment

The opening of the energy sector to foreign investment attracted numerous international companies, which brought capital and advanced technology. This boosted the development of new power plants and improved the country’s electricity infrastructure.