The 1990s witnessed a significant increase in investment in the sector oil and gas in Latin America due to industry privatization and liberalization. In the last decade, however, the region experienced a new wave of nationalization in the hydrocarbon sector with tax increases and the participation and control of the state. Amid this trend of expropriation, it is important to note that there is considerable variation in the specific policies that Latin American countries implemented. This paper explores the divergent evolution of these policy frameworks, which can be largely explained by the political economy of each country's energy sector. It also evaluates the possible evolution of the sector over the next decade and sheds light on future implications for energy in Latin America. Plataforma Democrática Working Paper no. 9, July 2010.