1934 oil concession

The 1934 oil concession refers to an agreement signed in Mexico that allowed foreign companies, particularly American ones, to explore and extract oil in the country. This was significant following Mexico’s 1917 Constitution, which nationalized oil resources. The concession aimed to attract investment and expertise to boost the oil industry, vital for the economy. However, it sparked national debates about sovereignty and control over natural resources. Eventually, in 1938, President Lázaro Cárdenas expropriated foreign oil companies, leading to the creation of the state-owned company PEMEX and adjusting Mexico's stance on foreign involvement in its oil sector.