Which country was the first to nationalize its oil industry, in 1938? Mexico was the country that nationalized its oil industry in 1938.
On March 18, 1938, Mexican President Lázaro Cárdenas expropriated the petroleum assets of foreign-owned companies operating in Mexico. The decision followed a long labor dispute: oil workers sought improved wages and working conditions, while the companies resisted complying with a ruling that supported the workers’ claims.
The action drew on Article 27 of Mexico’s 1917 Constitution, which established national ownership of subsoil resources. The government took control of oil fields, refineries, pipelines, and other facilities. In June 1938, it created Petróleos Mexicanos, better known as PEMEX, to manage the nationalized industry.
The date is important because other oil-producing countries nationalized their industries later or in stages. Iran’s nationalization under Prime Minister Mohammad Mosaddegh came in 1951, while Saudi Arabia’s oil industry developed through later state takeovers. Mexico’s 1938 expropriation became a major symbol of economic nationalism.