ABSTRACT
The one event that reversed the downward trend in Colombia's oil plight was the nationalization of Mexican Oil in 1938. A rude awakening came when Mexico nationalized its oil and directly challenged the foreign oil companies; in reprisal, England immediately broke diplomatic relations. The Colombian government made no direct statements about Mexico, although official pronouncements reaffirmed the country's commitment to scrupulously honoring the contracts in force with the oil companies. Mexico's nationalization of oil awoke considerable interest in petroleum throughout Latin America. The Ministry of Mines and Petroleum, created in 1940, had raised—parallel to the Barrancabermeja lawsuit— the issue of what institution could replace Exxon in running the concession. Exxon meanwhile orchestrated one last attempt to bring private Colombian capital into the new National Petroleum Company. The only private investors who showed any sustained interest were the factory owners of Antioquia in the National Association of Industrialists—of which Exxon was also a member.
