ABSTRACT
This chapter provides an analysis of refining policies and their impact on the oil industry's development. It presents the most important measures from the time of oil industry nationalization until the mid-1970s. The chapter explains the problems involved in the steady expansion of the refining system. It discusses the policies followed during the oil boom and the modifications to these policies made as a result of the country's economic and financial crisis in 1981-1982. The chapter analyses other factors influencing the industry's progress and its problems. The first refineries were installed in Mexico early in this century when the oil industry was in the hands of foreign companies. With the oil industry nationalization in 1938, refining activities were affected by the decision to adapt the level of production to domestic demand and to utilize this energy source to support economic development and industrialization efforts. The chapter offers the conclusions derived from the analysis along with the industry's future development prospects.
