Mexican Eagle Petroleum Company
| Company type | Private (formerly) |
|---|---|
| Industry | Petroleum |
| Founded | 1909 |
| Founder | Sir Weetman Pearson |
| Defunct | 1963 |
| Fate | Merged with Royal Dutch Shell (1959) |
| Successor | Royal Dutch Shell |
| Headquarters | Mexico City , Mexico |
Area served | Mexico, Gulf of Mexico |
Key people | Sir Weetman Pearson (founder) |
| Products | Gasoline, lubricants, crude oil production and distribution |
| Parent | Royal Dutch Shell (after 1919) |
Compañía Mexicana de Petróleo El Águila SA, also known as El Águila or the Mexican Eagle Oil Company, was a Mexican petroleum enterprise established in 1909 that specialized in producing and distributing gasoline and lubricants until its 1959 merger with Royal Dutch Shell.
History
The British entrepreneur Sir Weetman Pearson founded the company to manage his oil ventures in Mexico. His initial engagement began in 1889 through government contracts for significant infrastructure developments, including Mexico City's Gran Canal and Veracruz's port, which later extended into mining, transportation, and utility sectors.
Oil exploration in Mexico was initially undertaken by American investors such as Henry Clay Pierce and Edward L. Doheny starting in 1901. Pearson’s geological assessments identified oil seepages near Pedregal and San Cristóbal, leading him to acquire extensive exploration rights in 1901. By 1906, he had constructed refineries, pipelines, and port facilities; however, a major oil discovery was not made until 1908. That same year, a catastrophic fire destroyed an entire oil field but did not halt further development.
In 1909, Pearson established Compañía Mexicana de Petróleo El Águila to consolidate his oil interests. After ongoing exploration efforts, a significant well produced 100,000 barrels per day near the Gulf coast in December 1910, positioning Pearson as one of Mexico’s foremost oil magnates alongside Doheny. Despite competition from American and European companies, El Águila maintained a leading position until the post-World War I period.
The Mexican Revolution of 1911 terminated many of Pearson’s civil contracts but preserved El Águila’s exclusive exploration rights across vast territories. By 1914, the company held control over 1.5 million acres for exploration purposes, operated two refineries—including a newly built plant at Tampico—and managed an extensive network of pipelines and storage facilities.
By mid-1913, Mexican Eagle had become the largest entity within the Pearson group with net assets valued at £6.8 million, increasing to £8 million by late 1918. It represented the group's principal asset contributing to a £17 million valuation that year, ranking it among the world’s largest corporations. By 1919, Mexican Eagle accounted for £13.4 million of the group’s £29.6 million valuation. Its market capitalization of £62.6 million placed it alongside major industry players such as Burmah Oil and significantly ahead of Anglo-Persian Oil or Shell Transport and Trading.
Buyout offers and eventual sale
In 1911, Pearson declined a purchase proposal from the Texas Oil Company. He similarly turned down acquisition attempts by Royal Dutch Shell in 1912 and 1913 as well as offers from Standard Oil of New Jersey in 1913 and again in 1916. By 1916, Pearson showed some willingness to sell; however, intervention by the UK Government for strategic reasons complicated matters. He suggested selling half of his oil holdings to the government, which instead imposed wartime restrictions in 1917 that prohibited ownership transfers during conflict periods. The 1917 Mexican Constitution further nationalized oil reserves.
Negotiations initiated by Calouste Gulbenkian with Pearson in October 1918 led to Royal Dutch Shell's acquisition of Mexican Eagle. On April 2, 1919, Royal Dutch Petroleum Company together with the "Shell" Transport and Trading Company jointly purchased Mexican Eagle for US$75 million.
Mexican Eagle continued as Mexico's leading oil company until March 18, 1938, when President Lázaro Cárdenas nationalized all foreign-owned petroleum assets, forming Petróleos Mexicanos (Pemex).
El Águila was officially dissolved on May 24, 1963.
Eagle Oil and Shipping Company
Pearson initiated the acquisition of steam-powered tankers to facilitate the transportation of oil output. Armstrong Whitworth constructed the SS San Cristobal (2,041 tons) in 1906, followed by Swan Hunter's launch of the SS San Antonio (5,251 tons) in 1909. Additionally, Pearson procured the SS James Brand (3,907 tons), which was subsequently renamed San Bernardo.
In 1912, Pearson established the Eagle Oil and Shipping Company—originally known as Eagle Oil Transport Company—in the United Kingdom to oversee his fleet and handle the global distribution of Mexican Eagle's products. The company promptly commissioned 20 state-of-the-art steam tankers at a total investment of £3 million. Several vessels were lost during the First World War.
Following the war, Eagle Oil Transport expanded its fleet by acquiring numerous new tankers averaging approximately 13,000 tons each. When Royal Dutch Shell took over Pearson's oil enterprises, this acquisition included Eagle Oil Transport and Anglo-Saxon Petroleum as well as Mexican Eagle Petroleum.
Around 1930, the company adopted the name Eagle Oil and Shipping Company. By roughly 1935, it introduced a new class of motor tankers with an average capacity near 8,000 tons each.
Registered in the United Kingdom, Eagle Oil and Shipping remained a subsidiary of Royal Dutch Shell after Mexico nationalized its oil industry in 1938. The fleet continued to transport crude oil from the Gulf of Mexico to the UK. During World War II, the company was crucial in maintaining petroleum supplies to Britain despite intense German assaults targeting oil carriers. Enemy attacks resulted in the sinking of 17 ships and caused more than 206 casualties among crew members and DEMS gunners.
One significant loss was the (8,073 tons), which endured a naval bombardment by the German cruiser Admiral Scheer in 1940 but was ultimately sunk by U-404 off the coast of Virginia in 1942, with 19 fatalities.
In 1942, several Empire tankers were assigned by the Ministry of War Transport to be managed by Eagle Oil and Shipping; one such vessel was lost in 1943. After the war, the company acquired two surviving Empire ships along with two T2 tankers constructed in the United States. Between 1950 and 1960, Eagle Oil and Shipping modernized its fleet with sixteen new vessels, significantly boosting tonnage capacity by the end of that decade. In 1959, Royal Dutch Shell fully integrated Eagle Oil and Shipping into its operations.