How Many Mexicans Does it Take to Drill an Oil Well?

This article describes the state of the government owned oil industry in Mexico. It is extremely inefficient, and the effects of this- lost government revenue from taxes and having to import oil in the future- will be catastrophic for Mexican citizens. Taxes from oil accounts for 2/5 of government revenue, meaning serious implications in the near future as output is declining sharply. Unfortunately, politics have gotten in the way of true reform as presidents have been hesitant to make rational changes which would upset the unions. This is a perfect example of public failure.