Recent United States news headlines regarding scandalous clean energy initiatives and moratoriums on deep water drilling in US waters in the Gulf of Mexico have highlighted America's continuing dependence on foreign oil for roughly half our daily needs. Today, Mexico is a net oil exporting nation and is the third largest exporter of crude oil to the United States. But with their current reserves dwindling, Mexico runs the risk of becoming a net oil importer by 2020. A proper assessment of the oil industry in Mexico is crucial because it is a vital part of their economy & fiscal policy and the implications of its decline will have a tremendous impact on not only Mexico, but the United States as well. This paper defines the reasons behind Mexico's slide to becoming a net oil importer and the struggles it faces to find new oil reserves. It explains the struggles that Pemex has had in both its downstream and upstream sectors that have led to these declining reserves. Finally, the paper draws conclusions on how Mexico can take advantage of two other National Oil Companies and apply their best practices towards turning around their struggling oil industry.