Strange things happen in the world of Latin American energy. In Argentina, the government decrees clocks must be put forward to counter the threat of blackouts. In Ecuador, where oil output is dropping, the government demands compensation from foreigners in return for protecting the environment by not drilling for oil.

The result is a developing regional crisis. In Argentina, price controls aimed at curbing inflation have boosted energy consumption while discouraging investment. In a recent analysis, Eurasia Group, a risk consultancy, highlighted the role of Latin American citizens’ apparently low tolerance of inflation, but high tolerance for state intervention. That encourages populist politicians to court favour in the short-term with price controls and, given high global energy prices, resource nationalism. No wonder Repsol of Spain is selling off bits of its ill-fated investment in YPF, Argentina’s domestic energy giant, to local buyers. Better regional political connections might help lift some price caps.