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Summary
- Colonial Pipeline halted all pipeline operations following a cyber attack on its network.
- The company expects to substantially restore the services by the end of the week.
- The East Coast could reportedly see gas prices increase between three and seven cents this week.
The operations of the U.S.’s biggest refined products pipeline system Colonial Pipeline Company have been temporarily shut down since Friday following a cybersecurity attack. The operations are expected to be restored only by the end of the week.
Georgia-based Colonial transports more than 100 million gallons of fuel daily throughout the Southern and Eastern U.S. On Friday, a ransomware attack forced the company to temporarily cut off its pipeline network that spans more than 5,500 miles between Houston, Texas and Linden, New Jersey.
A prolonged shutdown, which came in unexpectedly, could impact the fuel supply to pumps and airports. Reports say the East Coast could see gasoline prices increase in the range of three to seven cents this week.
Source: Pixabay
Here, we explore what exactly happened since Friday.
Colonial announced May 7 that it is temporarily halting all pipeline operations because of a cybersecurity attack, which involved ransomware. Following the attack, which also affected Colonial’s IT systems, the company had to take certain systems offline.
The company on Sunday said some lateral lines between terminals and delivery points have become operational. However, four of tis mainlines remain offline.
Meanwhile, the Department of Transportation has declared a regional emergency and reduced some restrictions on motor carriers and drivers providing assistance to emergency related shortage of refined petroleum products across the impacted areas.
According to the department, the affected areas include New York, Texas, Alabama, District of Columbia, Delaware, Florida, Kentucky, Georgia, Louisiana, Mississippi, Arkansas, New Jersey, North Carolina, South Carolina, Pennsylvania, Maryland, Tennessee and Virginia.
The Federal Bureau of Investigation has confirmed that the Darkside is behind this attack. Darkside reportedly released a statement saying the attack is apolitical and it did not mean to create a widespread disruption.
The company was not able to give a timeline for restoration until today’s update, in which Colonial said the service will be returned in a phased approach and it expects to substantially restore operational service by the end of the week.
