US companies are moving into Venezuela to extract crude oil reserves, potentially lowering electricity prices for Bitcoin miners. Chevron is the only major US oil company there, but President Trump wants more involvement. Analysts say even tapping a fraction of Venezuela’s oil reserves could impact energy prices globally.

The US may need a decade to make Venezuela a “production powerhouse” due to political transitions and existing sanctions. Analysts estimate over $100 billion in infrastructure investment would be required for the country to regain its former status as a significant oil producer. Venezuelan oil production has significantly declined over the years.

Crude oil prices dropped after the US intervention in Venezuela, offering some relief for Bitcoin miners whose electricity costs are tied to oil prices. The broader crypto market is expected to be influenced more by shifts in macro risk appetite, volatility, and cross-asset positioning than energy fundamentals. Bitcoin’s price is expected to be less impacted by energy prices.

Read more at Cointelegraph: Extracting Venezuelan Oil Could Reduce Bitcoin Mining Costs: Bitfinex