The ransomware hackers hacked into the system of Colonial Pipeline Company, the operator of the U.S. East Coast pipeline system, on Friday (7), forcing the company to shut down its pipeline operations. Will the U.S. East Coast pipeline be shut down as a result? Which party was the hacker? How bad is the impact? Will local gasoline prices skyrocket? The following is compiled through Q & A.
Who are the victims? Which group are the hackers?
Colonial and the U.S. government have blamed the massive oil pipeline shutdown on a ransom demand, blaming cybercrime groups that often take control of data and computer networks as “captives” and demand ransom payments in digital currency such as Bitcoin.
It is not possible to officially identify which hacker group committed the operation, but a former U.S. official and three industry sources told Reuters that a hacker group called “Darkside” (dark side) is one of the suspects. This organization is new, but consists of a group of professional, professional-level hacking veterans.
According to three industry sources, the organization that handled the hacking incident included FireEye, a US-based security firm.
How bad is the impact?
Colonial’s more than 5,500-mile (8,850-kilometer) transmission network is the source of gasoline, diesel and jet fuel for the U.S. East Coast. The company delivers 2.5 million barrels of fuel a day from Gulf Coast refineries to markets such as Washington, New Jersey and North Carolina, and 900,000 barrels to New York, and also serves major U.S. airports such as Atlanta Hartsfield Jackson Airport and other major U.S. airports, supplying about 45 percent of the fuel to the East Coast each day.
Ransomware can cause catastrophic damage to an organization’s network by blocking critical data or crippling computer systems beyond repair, but the extent to which it affects the actual operations of energy companies varies.
For example, Saudi Aramco suffered a cyber attack in 2012 that crippled the company’s computer systems but did not affect crude oil production much. In contrast, a more recent ransom attack on Norwegian aluminum major Norsk Hydro has temporarily halted the company’s push to automate its smelters.
Experts say the severity of Colonial’s case will depend on whether the ransomware compromises the company’s operational technology network that also supports the oil pipeline operator interface. U.S. government officials announced earlier this year that a natural gas compression company had suffered a hack that affected the company’s operational technology network, causing the entire pipeline to shut down for two days.
Colonial has not publicly stated the extent of the ransomware impact, but Robert M. Lee, executive director of the information security firm Dragos, said he believes Colonial is proactively shutting down its operations network to ensure the ransomware does not spread through the system and that “this is hopefully a temporary shutdown, not a more permanent shutdown “
● Will flying be affected?
Colonial also supplies jet fuel to major U.S. airports, which could affect air traffic if the pipeline shutdown is prolonged. However, airports including Ttsfield-Jackson Atlanta International Airport, North Carolina’s Lott Douglas International Airport and Raleigh-Durham International Airport are monitoring the situation, which could be bad if there is a lack of fuel transportation for more than four or five days. A spokesman for Raleigh-Durham International Airport said there is still more than 11 days of aircraft fuel in stock.
Is there an alternative?
There are some areas with alternative fuel pipelines, but none that can fully replace Colonial’s fuel deliveries.
Compared to the northeastern U.S., the southeastern states have fewer crude oil import terminals, making it more difficult to receive crude oil by sea. If the pipeline shutdown lengthens, the supply of these refined products will be distributed by road and rail, but the cost will be higher, which will also lead to higher oil prices.
● Will gasoline prices go up?
If the shutdown continues, U.S. gas stations are expected to raise gasoline prices. In the New York Mercantile Exchange trading RBOB gasoline June futures 10 intraday once soared 4.24%, climbing to a three-year high, later converged to 1.6%, at $2.16 per gallon.
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