U.S. Seeks Return of World Bank Oil and Gas Financing
The U.S. Treasury is requesting that the World Bank resume financing for upstream projects to boost global energy access.
Updated on Oct. 15, 2026 in Oil and Gas
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U.S. Treasury Secretary Scott Bessent has formally requested that the World Bank Group end its long-standing prohibition on financing upstream oil and gas projects. The move aims to increase energy access in developing markets as the institution prepares to support the Mission 300 electrification program.
Why it matters
The request signals a potential shift in global development financing, as current restrictions on fossil-fuel investments limit the energy sources available to developing nations. If implemented, this change could expand capital availability for exploration and production companies operating in emerging economies.
The World Bank aims to provide electricity to 300 million people across Africa by 2030, a goal currently balanced against a 2019 investment policy that prohibits funding for new upstream oil and gas exploration. The bank has also maintained a strict halt on coal-fired power plant financing since 2010.
The players
Scott Bessent
The United States Treasury Secretary who leads the department responsible for managing U.S. economic policy and international financial relations.
World Bank Group
An international financial institution that provides loans and grants to the governments of low- and middle-income countries to pursue capital projects.
The details
The World Bank currently mandates that energy projects must align with Paris climate agreement commitments and demonstrate clear energy-access benefits to qualify for funding. While the bank continues to support midstream and downstream gas infrastructure that functions as a least-cost development option, the prohibition on upstream projects restricts drilling and well operations. Lifting this ban would alter how the bank assesses its capital allocation for exploration projects in developing countries.
Timeline
2010: The World Bank stopped financing new coal-fired power plants.
2017: The World Bank announced an end to upstream oil and gas investments.
2019: The deadline for ending new upstream oil and gas investments took effect.
October 14, 2026: Scott Bessent published the request for financing changes.
2030: The target year for the Mission 300 electrification program.
Market Landscape
The World Bank’s lending criteria have been heavily shaped by the Paris climate agreement, which shifted institutional funding away from fossil fuel exploration. This request represents a potential departure from that precedent, aiming to integrate upstream oil and gas into the bank's development framework.
Operators in the exploration and production sector should monitor whether the World Bank begins reviewing upstream projects in the near term. If the institution adjusts its policy, firms may find new opportunities for project financing in emerging markets that were previously ineligible for development capital.
The takeaway
The move signals that the U.S. is pushing to prioritize energy availability in developing markets over existing investment restrictions. Operators should track whether the World Bank initiates a formal review process for its upstream financing rules following this request.
Further reading
For additional context on how international energy policies shift investment flows, see our Oil and Gas section.
Source note: This article includes information reported by Okay News.
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Should international development banks fund oil and gas projects to expand energy access for developing nations?
