Cyberattack Shuts Down Colonial Pipeline, Largest U.S. Fuel Transport System

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. Oil & Gas Pipeline Industry was left reeling over the weekend after a ransomware attack shut down activity on the Colonial Pipeline System, the nation's largest fuel pipeline and a major system along the East Coast. Some smaller lines on the system have resumed operations since the Friday's attack, but the owner, Colonial Pipeline Company, has not yet offered a definitive timeline for a full recovery, saying it 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 CNBC.

At least one major Gulf Coast refinery had closed multiple units as of Sunday in response to the attack.

The 5,500-mile Colonial Pipeline originates in Texas and traverses every state along the Gulf Coast (except Florida) and the East Coast, up through New Jersey. It carries more than 2.5 million barrels per day (BBL/d). Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Search Database can click here for a detailed list of all major assets within the Colonial Pipeline System.

Click on the image at right for a map of the Colonial Pipeline System.

Industrial Info is tracking 13 active projects related to the system; subscribers to Industrial Info's Oil & Gas Pipeline Project Database can click here for a detailed list.

Products carried by the pipeline include gasoline, diesel, home heating oil and jet fuel.

NBC News reported a Russian criminal group known as "Dark Side" may be responsible for the attack, citing two sources familiar with the matter. A White House official said Sunday that the Biden administration has temporarily loosened regulations on the roadway transportation of petroleum products, to avoid fuel-supply disruptions.

Like countless other institutions, both public and private, the U.S. Oil & Gas Pipeline Industry has become increasingly vulnerable to cyberattacks. Industry experts have told various media outlets that the Colonial Pipeline attack has yet to affect gasoline supply or prices, but a prolonged shutdown--especially 10 days or more--could force refiners along the Gulf Coast to reduce their runs as inventories build up, affecting oil (and thus gasoline) prices and leading to shortages in the U.S. Southwest region, according to Wells Fargo analyst Roger Read, as quoted by CNBC.

Nonetheless, an analyst at GasBuddy.com warned against panic buying: "Rushing out and filling your tank will make the problem much, much more acute and likely double or triple the length of any supply event, if it comes to that," said Patrick DeHaan, head of petroleum analysis, to Reuters.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.