Through a retrospective analysis of Mexico's oil history, this work examines the privatization processes that occurred in the petrochemical sector, from the abolishment of the government's monopoly, Petroleos Mexicanos (PEMEX) during the 1980s, until the restructuring and open liberalization in the early 1990s, focusing on the areas incorporated to production processes, particularly along the Gulf coast. As a result of the industrial policies and regional development strategies promoted by the government from the sixties, oriented towards strengthening production in areas with the highest potential, attractive business investment areas were developed. These included southern Tamaulipas, a strategic region where a number of industrial factors facilitated access to raw materials at competitive prices, as well as their processing and distribution to local and international markets, all of these within a single location. The strategic nature of the petrochemical location and production have made southern Tamaulipas a key factor for the territorial shaping and industrial development linked to the behavior of transnational companies that, seeking comparative advantages, have relocated parts of their production capacity in this region. (C) 2003 Elsevier Ltd. All rights reserved.