Largest Gasoline Pipeline On East Coast Shutdown Due To Cyberattack Across 17 States
$WTI $CL $XOM $BP $XLE $FEYE — Colonial Pipeline Attack
I will be the first to admit that Oil and Gas are not my specialties. so please do your own due diligence on this information. Consider these as “breadcrumbs” into more news that may develop this week. I will try to keep this short with reference links below this article for more information.
Crude Oil as of 3:35am Eastern: 65.39, Change +0.49
SPX price as of 3:38am Eastern: 4,225.88, Change +0.63
The colonial Pipeline carries 45% of fuel supplies in the eastern U.S. Some 5,500 miles of pipeline has been shut down in response to the attack.
The government has declared national emergency in Washington D.C. and 17 states; AL, AR, DE, FL, GA, KY, LA, MD, MS, NJ, NY, NC, PA, SC, TN, TX & VA.
“[We] 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.”
The attack seems to be from a Eastern European-based criminal gang and targeting the Colonial Pipeline; “DarkSide” according to media reports being issued out.
The company Mandiant, which is owned by FireEye (NASDAQ: $FEYE) are assigned to investigating what has happened to the pipeline in regards to the ransomware attack.
The Colonial pipeline system “is an irreplaceable, vital jugular for fuel supply to the East Coast,” McNally said. “It’s the major artery and there are no real other good options to replace it.”
I believe that if you are low on gas, you should try to top off — “Just in case.” prices do run higher.
It’s thought that this will not be turned back online right away and will need to rely on the storage within the Gulf Coast region and the Northeast and will decide if this is a short-term event or long term event as the pipeline remains offline.
“A cyber attack perpetrated by nation states or violent extremist groups could be as destructive as the terrorist attack of 9/11,”
- Leon Panetta, US Secretary Of Defense, October 11th 2012
The length will also be determined by how far the ransomware reached and of course if and any backup procedures by their IT team and how fast they can isolate the ransomware on the network from spreading while restoring services.
Questions for discussion:
• Will FEMA be deployed? National Guard?
• Gas Prices in LA are already at $ 5.99/gal
• Does this become the “last straw” that breaks the back with the Keystone Pipeline being closed?
• Can the country handle a increase in gas price; how will this affect inflation?
Companies watch this week in regards to this situation:
$WTI $CL $XOM $BP $XLE $FEYE
It’s late and I apologize for any spelling or grammar mistakes, forgive me. Goodnight
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