On Aug. 12 Mexican president Enrique Peña Nieto formally announced his plan for transforming the country's nationalized energy sector by opening up the giant oil company Petróleos Mexicanos (Pemex) to shared risk contracts with Mexican and foreign private companies and by allowing private companies to generate electricity for the Federal Energy Commission (CFE). Mexico is currently the world's largest oil producer, with about 2.5 million barrels pumped each day, but Peña Nieto said his "energy reform" would raise oil production to 3 million barrels a day in 2018 and 3.5 million 2025 and natural gas production from 1.7 million cubic feet now to 8 million cubic feet in 2015. The reform, which would require changes to articles 27 and 28 of the Constitution, is supported by the center-right National Action Party (PAN) and Peña's centrist Institutional Revolutionary Party (PRI); the votes from the two parties should be enough to get the legislation through the Congress.

At least 26 are dead, 50 injured and seven still missing after a Sept. 18 explosion at a Petróleos Mexicanos  (Pemex) gas pipeline distribution center on the outskirts of Reynosa, on the Texas border in Tamaulipas state. The dead include four Pemex employees and 22 private contractors. The pipeline serves wells in northern Mexico's Burgos basin, which have been repeatedly attacked for pilfering by criminal gangs such as Los Zetas. Last month, Pemex said the amount of petroleum products stolen in the first half of this year is up 18% compared to 2011, totalling more than 1.8 million barrels. But the company denied that criminal activity was linked to the Reynosa blast. (Brownsville Herald, Sept. 19; OilPrice, Aug. 21)