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Colonial Pipeline Cyberattack Surges Crude Oil Price

The 5,500-mile Colonial Pipeline Co. system transports fuel from Gulf Coast refineries to the New York metro region. According to the company’s website, the pipeline pumps more than 100 million gallons a day or about 45 per cent of the fuel consumed on the East Coast. It supports US military bases and delivers gasoline, diesel, jet fuel, and heating oil.

Most analysts believe fuel prices will remain unchanged if the pipeline is reopened in the coming days. However, Yury Dvorkin, an assistant professor of electrical and computer engineering at New York University’s Tandon School of Engineering, told FOX Business that a prolonged outage could have a similar impact on prices as Hurricane Sandy.

Colonial Pipeline said in a statement that its operations team was working on a proposal to restart the system on Sunday. The company said, “While our mainlines (Lines 1, 2, 3 and 4) remain offline, some smaller lateral lines between terminals and delivery points are now operational. We are in the process of restoring service to other laterals and will bring our full system back online only when we believe it is safe to do so, and in full compliance with the approval of all federal regulations.”

According to Colonial, ransomware was used in the assault, which involves an attacker seizing control of computer networks and demanding payment. The business, however, has not revealed what was requested, who made the demand, or whether they paid a ransom. The FBI, Department of Energy (DOE), and Cybersecurity and Infrastructure Protection Agency (CISA) have confirmed that they are collaborating with Colonial Pipeline to figure out what happened.

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