They could probably increase their production too, if it were opened up to the free market.
The problem is that for decades, Mexico City has been using oil revenue as a way to fund the federal government, and they haven’t been pouring back any real amount of the profits into modernizing equipment, R&D, ect. Pemex hasn’t been investing for the long term, and they’re beginning to pay the price. The federal government of Mexico gets close to 40% of revenue from Pemex. If you think things are bad down there now...