Displacement and denationalisation: the Mexican Gulf 75 years after the expropriation

Abstract

Recent oil and gas sector reforms in Mexico transform protections on petroleum resources and labour that were implemented as a result of the 1938 nationalisation of the country's oil industry. This paper examines the Etileno XXI project, a private petrochemical plant led by a Brazilian firm and supported by Mexican and transnational capital, which manifests the role of early 21st-century global commodity markets in restructuring Mexico's energy sector. Etileno XXI is described as a major step toward privatising petrochemical processing in the country and as a significant creator of jobs, albeit low wage, at the site of production. Yet the project and corresponding oil-sector reforms will have impacts on the surrounding area that compromise pre-existing livelihoods both ecologically and via erosion of earlier protections on labour secured through the national oil workers union. The article thus argues for a conceptualisation of displacement induced by extractive industry that incorporates into its analysis the effects of industrial restructuring and expansion on extant production relations, in both the short and longer term.