For the first time in nearly 80 years, Mexico opened its oil industry to foreign companies, offering 14 offshore exploration blocs in a July 15 auction. However, only two of the blocs were sold, falling short of expectations. ExxonMobil, Chevron and Total all passed on the first 14 shallow-water oil blocs in the Gulf of Mexico. A consortium of Mexico-based Sierra Oil & Gas, Texas-based Talos Energy and UK-based Premier Oil Plc won Bloc No. 2 after the first bloc didn't receive a bid, Mexico's National Hydrocarbons Commission and Energy Secretariat announced. Only nine companies took part in the auction, fewer than the 25 originally planned. A larger auction is planned for next month. The blocs are near the US-Mexico transboundary waters, and close to some of the most significant discoveries of the past 15 years on the US side. A new Hydrocarbon Law, allowing for production-sharing and profit-sharing, was instated in 2014. Over the past decade, Mexico has fallen from the world's fifth oil producer to tenth. (FuelFix, July 16; FuelFix, BBC News, July 15; WSJ, July 12)

After an electoral season marred by narco-violence and assassination of candidates of all parties, the results from Mexico's June 7 vote are in. The coalition led by the Institutional Revolutionary Party (PRI), which ruled Mexico as a one-party state for 80 years, maintains its slim majority in the lower-house Chamber of Deputies, although it lost some seats. Gubernatorial races were also held in several states, including some hit especially hard by the cartel violence. The PRI gained the governorship of Guerrero, but lost control of Michoacán to the left opposition. In one upset, the PRI lost northern Nuevo León state to an independent, Jaime "El Bronco" Rodríguez Calderón—the first independent candidate to win a governorship in Mexico. The gadfly rancher survived two assassination attempts by the Zetas when he was mayor of García, a Monterrey suburb. His son was killed in an attempted abduction, and his young daughter kidnapped, although returned unharmed. El Bronco beat the PRI and other estabished parties with a populist campaign and invective against entrenched corruption. With the state's establishment press bitterly opposed to him, he made deft use of social media to mobilize support. (Reuters, BBC News, Televisa, CNN México, June 8)

In an open acknowledgement that it cannot secure its pipeline system from plunder by criminal gangs, Mexico's state oil monopoly Pemex announced Feb. 18 that it will no longer pump refined gasoline and diesel through the duct network. Mexico lost $1.14 billion last year to pipeline thefts last year—a 70% increase over the previous year. This is an ominous sign that the drug cartels are becoming the real power on the ground throughout much of the country—moving beyond their mainstays of illicit substances to contraband control of legal commodities like oil and minerals, establishing a virtual parallel economy. Pemex will now only send "unfinished" fuel through its more than 14,000 kilometers of pipeline, reported El Universal. The company said in a statement: "Customers should make sure that the fuel they buy has been delivered from Pemex terminals, and not buy gasoline or diesel from anyone other than gas stations or authorized dealers, given that...it could damage motors."

This week, the Obama administration released a draft of its next five-year plan for offshore drilling—opening up a previously off-limits area along the Southeastern coast, from Virginia down to Georgia, as well as offering many new oil leases in the Gulf of Mexico. And while it would protect some key areas north of Alaska from drilling, it would open other Arctic areas up. The plan designates 9.8 million acres of Alaska's Beaufort and Chukchi seas off-limits to oil-and-gas leasing, and asks Congress to set aside 12 million acres in the Arctic National Wildlife Refuge (ANWR) as "wilderness area," affording another level of protection. Daily Caller is outraged that the Alaskan waters are to be off-limits; Grist is outraged that the Southeastern waters are to be opened up; Bloomberg tries to play it objective. However, read the small print last line of the White House memo on the supposedly new polcy: "Nothing in this withdrawal affects the rights under existing leases in the withdrawn areas."

Petróleos Mexicanos (Pemex), Mexico's giant state-owned oil monopoly, signed contracts worth $149 billion with outside companies from 2003 to 2012, according to a Jan. 23 investigative report by Reuters wire service; about 8% of the contracts were cited by a congressional watchdog, the Chamber of Deputies' Federal Audit Office (ASF), as having irregularities "ranging from overcharging for shoddy work to outright fraud," Reuters wrote. The problems involved more than 100 contracts with a total value of $11.7 billion.

A group of 43 Mexican teachers' college students missing since the night of Sept. 26-27 were killed by gang members and their bodies were burned and disposed of in Cocula municipality in the southwestern state of Guerrero, federal attorney general Jesús Murillo Karam announced at a Nov. 7 press conference in Mexico City. Three members of the Guerreros Unidos ("United Warriors") criminal organization confessed to having participated in the execution of the students and the incineration of their bodies, according to Murillo Karam, who said the remains were so thoroughly burned that it might be difficult to extract DNA for identification. The Mexican government is planning to send the remains to technicians in Austria. The attorney general said he understood the skepticism of the students' parents about his office's findings, more than a month after the events: "It's natural…and it doesn't surprise me."

In a 9-1 decision on Oct. 30, Mexico's Supreme Court of Justice of the Nation (SCJN) rejected two proposals to put President Enrique Peña Nieto's "energy reform"—a program for a partial privatization of the country's energy industry—to a vote in an official referendum. The court agreed on Oct. 17 to consider a referendum proposal from the center-left National Regeneration Movement (MORENA), which had presented a petition with two million signatures; a larger center-left party, the Party of the Democratic Revolution (PRD), made a similar proposal. The justices ruled that voting on Peña Nieto's energy program would violate a constitutional prohibition against referenda on federal revenue policies. The two parties had argued that the vote concerned the use of national resources, not revenue. (New York Times, Oct. 30, from AP; La Jornada, Mexico, Oct. 31)

The Sept. 26-27 killing and abduction of several dozen students in the southwestern state of Guerrero could be creating problems for Mexican president Enrique Peña Nieto's efforts to improve the country's international image and to continue the opening of its economy to private businesses. Los Angeles Times correspondent Tracy Wilkinson reported on Oct. 25 that Peña's "government is clearly concerned it is losing a finely crafted domestic and international public relations campaign that emphasized major reforms of Mexico's energy sector. Publications in the US and Europe that once lavished praise on the president have turned the tables." (LA Times, Oct. 25)