Mexico’s president doubles down on PEMEX

For anyone unaware of Mexico’s situation, the government has a sunk cost bias with this public energy company, when it has been proven that it would be better to get rid of it rather than maintain it, basically, Pemex stopped being a productive company many years ago, mainly because it is a state monopoly, and this new law worsens the situation because it excuses said status. As of now, without any government interference or tax burdens, it would take Pemex approximately 100 years to break even, and that’s assuming electric cars don’t exist. Also, corruption in Pemex, through rigged bidding processes like the Odebrecht case and direct contract awards, shows that corruption exists at all levels of the company. Pemex workers are the least efficient in the oil industry. In 2013, they generated six times fewer sales than workers at private oil companies. Because it is a state-owned company, no one really cares if it incurs losses. As a result, Pemex is losing more than 900,000 pesos per minute, which amounts to an annual loss of 480 billion pesos in 2020. Here’s a video explaining it in greater detail https://youtu.be/93qizDwrgxI?si=KgPS3KxuQ8GUQOH4