Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Top U.S. fuel pipeline remains days from reopening after cyberattack

Stock MarketsMay 10, 2021 11:15PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Holding tanks are seen at Colonial Pipeline's Linden Junction Tank Farm in Woodbridge, New Jersey, U.S. in an undated photograph. Colonial Pipeline/Handout via REUTERS./File Photo

By Stephanie Kelly and Devika Krishna Kumar

NEW YORK (Reuters) -The biggest U.S. gasoline pipeline will not resume full operations for several more days due to a ransomware cyberattack blamed on a shadowy criminal network called DarkSide.

The attack on the Colonial Pipeline, which carries nearly half the fuel consumed along the U.S. East Coast, is one of the most disruptive digital ransom schemes ever reported.

While the impact remains to be quantified, the pipeline shutdown will reduce fuel availability in the near term, push up prices and force refiners to cut production because they have no way to ship the gas.

The privately owned company said on Monday it was working on restarting in phases with "the goal of substantially restoring operational service by the end of the week."

The FBI attributed the cyberattack to DarkSide, a group believed to be based in Russia or Eastern Europe. Its ransomware targets computers that do not use keyboards in the languages of former Soviet republics, cyber experts said.

President Joe Biden said there was no evidence thus far that Russia's government was involved.

'GOAL IS TO MAKE MONEY'

A statement issued in the group's name on Monday said: "Our goal is to make money, and not creating problems for society." Its statement did not mention Colonial Pipeline by name.

Ransomware is a type of malware designed to lock computers by encrypting data. The hackers demand payment to let the owner regain access. It is unknown how much money the hackers are seeking, and Colonial has not commented on whether it would pay.

Anne Neuberger, deputy national security adviser for cybersecurity, told reporters that the Biden administration is not offering advice on whether Colonial should pay the ransom.

Colonial on Friday shut its 5,500-mile (8,850-km) pipeline network, which moves fuels including gasoline, diesel and jet fuel, to protect its systems.

The episode laid bare the vulnerabilities of energy infrastructure to hackers. U.S. lawmakers responded with calls for stronger protections for critical energy infrastructure.

A spokesman for United Nations Secretary-General Antonio Guterres said the attack showed that U.N. member states needed to combat cybercrime to avoid a "devastating impact on the world that we all live in."

Colonial restarted some smaller lines on Sunday between fuel terminals and customer delivery points, releasing fuel stored locally to customers. On Monday, it also began manually operating its 700,000-barrel-per-day multi-product fuel line between Greensboro, North Carolina, and Maryland for a limited time while it has existing inventories.

But its main lines remained shut, and an alternative, smaller conduit operated by Kinder Morgan Inc (NYSE:KMI) serving the same region reached capacity.

The outage hit ahead of the summer vacation season, when gasoline demand and airline travel tend to peak.

PAIN AT THE PUMP?

Fearing shortages, consumers in the southeastern United States rushed to refuel. Gas stations in Georgia, North Carolina and Tennessee were seeing some panic buying, said Patrick De Haan, head of petroleum analysis at GasBuddy.

The American Automobile Association said the national average gasoline price climbed to $2.96 a gallon and could climb to its highest level since 2014.

In Georgia, trucking company owner Marcus Blash worried because his business cannot store fuel on site to hedge against price surges.

"We pay at the pump," he said. "It hasn't hit us yet, but this is going to hurt big time."

Florida resident Katina Willey went to several gas stations before she found one that had fuel available. "There were lines at three of the five stations I tried," she said.

If the disruption stretches on, fuel suppliers could ship by truck and rail instead. The Department of Transportation on Sunday lifted driver restrictions on fuel haulers in 17 states affected by the shutdown.

U.S. fuel importers are booking tankers to bring gasoline from Europe. U.S. refiners including Motiva Enterprises and Total (PA:TOTF) cut output at Gulf Coast plants on Monday because of a lack of transport.

Top U.S. fuel pipeline remains days from reopening after cyberattack
 

Related Articles

These 3 Chip Stocks Are Cheap and Screaming Buy
These 3 Chip Stocks Are Cheap and Screaming Buy By StockNews - Jun 24, 2021

A global semiconductor chip supply crunch has resulted in rising capital investments in the semiconductor industry, given its applications in virtually every industry....

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (16)
Rick Baier
Rick Baier May 11, 2021 12:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The utility companies are gonna get caught with their pants down. You want chaos take out the grid. This gas line issue is a cake walk
perplexed76 .
perplexed76 . May 10, 2021 11:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
is it a problem to pump liquid throgh a pipe in 21 century without any cyber- stuff ?
Investing Man
Investing Man May 10, 2021 11:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What do all these oil and fuel companies do with the trillions of subsidies we handed them from pur taxes. Things like this should have no impact
Kaveh Sun
Kaveh Sun May 10, 2021 11:01PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Somebody in the c suits installed a malware with a ‘labeled patch for windows’.
Steve Lora
Steve Lora May 10, 2021 10:36PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Atlanta deserves no gas.Glad they're closing stations today
CHAD TENDIES
CHAD TENDIES May 10, 2021 5:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I will believe it when I see it.
Ominous Owl
Ominous Owl May 10, 2021 2:48PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Easy! Print more & give them their ransom!
Alan Rice
Alan Rice May 10, 2021 12:57PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
US Govt. : Open negotiations with DS.
Vlad Lozovskiy
Vlad Lozovskiy May 10, 2021 12:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why does Biden administration worries?  Didn't he want everyone to switch to electric car?  now is the time!
Wojciech Stefaniak
Wojciech Stefaniak May 10, 2021 12:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Your russian friends said "Hello".
Gene Kret
Gene Kret May 10, 2021 10:51AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
UCO UCO UCO
James Johannsen
James Johannsen May 10, 2021 10:47AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hmm first the plandemic shortage of everything, then the Suez canal, now this. Manufactured crisis anyone?
ZS Beck
ZS Beck May 10, 2021 8:55AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Waiting for my next stimulus, this time for buying gas for my car,
John Klan
John Klan May 10, 2021 8:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
here comes another dollar higher for gas. 4.00 by years end. Thanks a lot Joe.
Casanova Frankenstein
Casanova Frankenstein May 10, 2021 8:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
How are you going to blame this on the President, ignoramus?
Adrian White
Adrian White May 10, 2021 8:39AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
John, are you actually implying that the president is the hacker? lol
John Klan
John Klan May 10, 2021 8:37AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
here co es another dollar higher fas under Biden. we'll see 4.00 per gal. by year end.
Larson Leyson
Larson Leyson May 10, 2021 8:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Yeah this is what happens when these major operators plug their systems to the internet. How naive !!! I guess so the employees can work from home lol !
Jim Jones
Jim Jones May 10, 2021 6:33AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Just give more cash handouts. Noone needs gas anyway because they get paid to do nothing.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email