Barges may be a "good alternative" way to transport refined products to other parts of the U.S., said De Haan. The 5,500 Colonial Pipeline, which delivers about 45% of the fuel consumed on the East Coast, halted operations last week after revealing a ransomware attack that … International benchmark Brent crude traded at $68.96 per barrel, gaining 68 cents. "Expect significant fuel shortages in the interior Southeast of the U.S.," Wells Fargo said in the note. Colonial Pipeline shut its entire network, the source of nearly half of the U.S. East Coast's fuel supply, after a cyber attack that involved ransomware. The FBI and the White House’s National Security Council did not immediately return messages seeking comment. The group behind the ransomware has now apologized, saying it only wants to … Patrick De Haan of GasBuddy told CNBC that the market has responded cautiously because it has "no idea" when operations will be restored. "Although, there is evidence that the actors’ ransomware is in Russia," the president added. He outlined three possible date ranges: 1. The Colonial Pipeline, which delivers about 45% of the fuel used along the Eastern seaboard, shut down Friday after a ransomware attack by gang of … — CNBC's Emma Newburger contributed to this report. "Right now, they've not asked for cyber support from the federal government, but we remain available to meet their cybersecurity needs," she added. Cyberattack hits one of the top pipelines in US. The Darkside criminal organization operates in Eastern Europe. Colonial Pipeline said it has recovered more than 84,000 gallons of gasoline spilled from its pipeline in Huntersville. ", "My advice to motorists is not to panic buy and make the situation much worse," DeHaan added. Gasoline futures were up 1.28% to $2.1542 per gallon, while heating oil futures rose 0.73% to $2.0252. "I think you're seeing the market respond very cautiously, not knowing if this could extend into five, seven, 10, 14 days.". ", Colonial Pipeline said in a statement Monday that it is executing a phased plan to incrementally return to service, with "the goal of substantially restoring operational service by the end of the week.". The operator of Colonial Pipeline fell prey to a ransomware attack on Friday, forcing all pipeline operations to stop. A hacker group known as DarkSide may be responsible for the attack. "They have some responsibility to deal with this. The hackers who caused the vast Colonial Pipeline to shut down on Friday reportedly began their cyberattack against the top US fuel pipeline operator a day earlier and stole a … "Restoring our network to normal operations is a process that requires the diligent remediation of our systems, and this takes time," the company said. Colonial Pipeline said Sunday it is developing a system restart plan, and that some smaller lines are now operational. Inventories will rise in the U.S. Gulf Coast, causing prices to fall, while prices in the East Coast would jump, the analyst said. Goldstein did not say whether authorities have identified Darkside as working for a foreign country. Deputy National Security Advisor for Cyber and Emerging Technologies Anne Neuberg said at the same press briefing that they are "actively engaged with the company and offering support as needed to restore their systems.". However, the government would need to waive the Jones Act, which requires trade between U.S. ports to be carried on ships that are built, owned and operated by U.S. citizens or permanent residents. On Sunday, Colonial Pipeline said it is developing a "system restart" plan. The pipeline transports gas, diesel, home heating oil and jet fuel. The attack on Colonial Pipeline, which runs from Texas to New Jersey and transports 45% of the East Coast's fuel supply, is the largest assault on US energy infrastructure in history. An attack shuts down Colonial Pipeline, a major transporter of gasoline along the East Coast. According to the newly released report from Colonial that it said it filed with the North Carolina Department of Environmental Quality, preliminary analysis shows the gas […] More than 10 days: Refiners in the Gulf Coast will almost definitely have to reduce their runs, and oil prices may weaken compared with waterborne crudes to encourage exports. The Federal Bureau of Investigation confirmed in a statement Monday that Darkside ransomware was responsible for the compromise of the Colonial Pipeline networks. Six to 10 days: Refiners may need to reduce the amount of crude oil they process if the pipeline remains shut for up to 10 days. The company said 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.". Deputy National Security Advisor for Cyber & Emerging Technologies Anne Neuberg speaks about the Colonial Pipeline outage following a cyber attack during the daily press briefing at the White House in Washington, May 10, 2021. Colonial’s pipelines feed large storage tanks up and down the East Coast, and supplies seem plentiful, in part because of reduced traffic during the pandemic. A cybersecurity attack targeting operators of a major East Coast fuel pipeline has left the nation reeling, exposing the vulnerabilities of critical infrastructure to new threats while also leaving many Americans with more questions than answers. That may be why the market has responded "very cautiously.". Wells Fargo says the restart date is key, and it outlined three scenarios for reopening that could help investors gauge the possible impact. MORE: Ransomware cyberattack shuts down major US pipeline, company says, MORE: SolarWinds cyberhack gained access to then-acting DHS chief's emails: Sources. Turn on desktop notifications for breaking stories about interest? "I would think that that could happen relatively soon, but again that may offer detail on where the situation is going," he said. Both gasoline and diesel rose more sharply on the CME commodity exchange on Friday, though the news of the cyberattack and shutdown broke relatively late in the trading day and the upward trends had already been in place. "Colonial is responsible for safely returning the pipeline to service, and our role in the federal government is to take proactive steps to analyze the impacts of the shutdown on the delivery of gasoline, diesel and aviation fuel in states that are dependent on the pipeline, and to identify federal options for alleviating supply shortfalls, should they develop," Sherwood-Randal said. The 5,500-mile pipeline system transports approximately 45% of all fuel consumed on the East Coast, according to its website, and runs from Texas to New Jersey. Homeland Security Advisor and Deputy National Security Advisor Dr. Elizabeth Sherwood-Randall speaks about the Colonial Pipeline outage following a cyber attack during the daily press briefing at the White House in Washington, May 10, 2021. Data is a real-time snapshot *Data is delayed at least 15 minutes. The Colonial Pipeline, which delivers about 45% of the fuel used along the Eastern Seaboard, shut down Friday after a ransomware attack by … The company said it will be providing updates as the restoration efforts progress. The company said Monday it expects the pipeline to be "substantially" back in operations by the end of the week. Colonial operates the country's largest refined products pipeline and transports 2.5 million barrels per day, according to its website. Colonial Pipeline said on Saturday that it was the victim of a cyberattack involving ransomware and had "proactively" halted all pipeline operations as a result. West Texas Intermediate crude futures, the U.S. oil benchmark, advanced 61 cents to $65.51 per barrel. Sign up for free newsletters and get more CNBC delivered to your inbox. It connects refineries from the U.S. Gulf Coast to more than 50 million people in the South and East. New mapping shows gasoline contamination from a spill on the Colonial Pipeline north of Charlotte last summer goes deeper into the soil than previously reported. The latest on who is behind it, how it could impact gas prices and more. It said its main pipeline remains offline but some smaller lines are now operational. Colonial Pipeline said it transports more than 100 million gallons of fuel daily, through a pipeline system spanning more than 5,500 miles between Texas and New Jersey. "In response to the cybersecurity attack on our system, we proactively took certain systems offline to contain the threat, which temporarily halted all pipeline operations, and affected some of our IT systems. "Even well-placed sources I've talked to really have nothing to say, and so the market really has no idea if this could be online tomorrow, if it's going to be three days," he said. Here is what to know about the Colonial Pipeline cyberattack, including the latest on who is behind it and how it could potentially impact gas prices. President Joe Biden acknowledged the ransomware attack during remarks on Monday, saying his administration has been tracking the incident "extremely carefully" and that he has been "personally briefed every day" on it. Colonial Pipeline Currently Operating Normally as Additional Steps Ensure System Resiliency During Widespread Freeze 02/17/2021 Press Release Colonial Pipeline Affiliate Completes Acquisition of Three Refined Product Terminals from Lincoln Terminal Company Fewer than five days: If a partial restart of the pipeline begins by Wednesday, there will be "no significant or lasting impacts.". "It is always a concern when any adversary, nation state or criminal group targets an American business or critical infrastructure and particularly, although not exclusively, when that effort results in disruption of a critical function or service," CISA's Goldstein told ABC News. ALPHARETTA, Ga. — A major U.S. pipeline delivering millions of gallons of gasoline, diesel and jet-fuel suffered a major cyberattack on May 7, causing the Colonial Pipeline to completely shut down its pipelines. "We are deeply focused on making sure that every organization in this country takes steps to minimize the risks to their networks and has the ability to recover quickly, regardless of the actors involved, because we know that there are so many groups out there that are attempting these kind of intrusions," he added. Eric Goldstein, the executive assistant director for cybersecurity at the Department of Homeland Security’s Cybersecurity and Infrastructure Security Agency (CISA), told ABC News in an interview on Monday that Americans should not expect any "shortfalls" from the hack. Patrick De Haan, head of petroleum analysis at GasBuddy, said there hasn't been much information on when the pipeline could come back online. Analysts from RBC Capital Markets said in a note that the East Coast could draw down inventories, rely on other districts, or increase gasoline imports — but these options would lead to higher energy prices. Roy Cooper declared a state of emergency on Monday to help ensure the state maintains a sufficient fuel supply amid the ongoing Colonial Pipeline shutdown, a … "This is not an outage of a refinery that produces gasoline and so supply is not disrupted for the rest of the nation that is not served by the Colonial Pipeline.". 2. The United States' largest fuel pipeline has been crippled shut since Friday after a cybersecurity attack — and it's not clear how long the outage will last. Natural gas futures were down 0.57% at $2.94 per million British thermal units. A shadowy group is reportedly responsible for the shutdown of one of the largest pipelines in the U.S. Holding tanks are seen at Colonial Pipeline's Linden Junction Tank Farm in Woodbridge, New Jersey. Patrick DeHaan, the head of petroleum analysis at GasBuddy, told ABC News Monday that the pipeline shutdown will likely not impact the price at the pump for most Americans. "This is evolving, but for now this is not going to be a national issue or have a national effect on gas prices," he added. Colonial Pipeline said in a statement Monday that it is executing a phased plan to incrementally return to service, with "the goal of substantially restoring operational service by … "Timing of the restart is the critical issue," Wells Fargo analyst Roger Read said in a note on Sunday. The breach at Alpharetta, Ga.-based Colonial Pipeline is the latest in a series of cybersecurity incidents confronting President Joe Biden’s administration — … North Carolina Gov. For now, DeHaan recommends that drivers in these areas conserve as much as possible, which could help "bring a much more rapid conclusion to this once the pipeline reopens. Colonial Pipeline fell prey to a ransomware attack on Friday, A hacker group known as DarkSide may be responsible. Colonial Pipeline is the country's largest refined products pipeline operator, transporting more than 100 million gallons of gasoline, diesel, jet fuel, and home heating oil, daily. "For example, to help address potential supply disruptions, the Department of Transportation issued an hours-of-service waiver yesterday, which provides greater flexibility to drivers transporting gasoline, diesel, jet fuel, and other refined petroleum products across 17 states as well as the District of Colombia," she added. Investigators at the largest fuel pipeline in the US are working to recover from a devastating cyber-attack that cut the flow of oil. That’s about 30% of the estimated 273,000 gallons that spilled on Aug. 14. As the outage continues, the situation could become more severe as time is running out, De Haan said. Source: Colonial Pipeline. To restore service, we must work to ensure that each of these systems can be brought back online safely.". The cracked section of pipe has been sent to a metallurgy lab to investigate what caused it to rupture. HUNTERSVILLE, N.C. (FOX 46 CHARLOTTE)- A Colonial Pipeline site assessment has revealed an estimated 1.2 million gallons of gasoline leaked into the ground in Huntersville back in August 2020. Colonial Pipeline suffered a cyberattack, shutting down its systems due to ransomware. 3. ", 24/7 coverage of breaking news and live events. Storage tanks at the Colonial Pipeline Co. Pelham junction and tank farm in Pelham, Alabama, U.S., on Monday, Sept. 19, 2016. Media Statement Update: Colonial Pipeline System Disruption. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. © 2021 CNBC LLC. The market is responding 'cautiously' to the Colonial Pipeline outage: GasBuddy Street Signs Asia Gasoline futures were up 1.28% to $2.1542 per … The FBI added that it will continue to work with the company and government partners on the ongoing investigation. DeHaan predicts that motorists along the Southeast, from northern Florida to Virginia, may see slight increases of between 5 to 15 cents per gallon at most. Got a confidential news tip? "It certainly creates some logistical challenges in the Southeast, and it may create price increases modestly in the Southeast, but there is not an impending spike coming nationally," he said. "It's hard to know if Colonial or the authorities in this issue even have a feeling for when this could be resolved themselves," De Haan said. We want to hear from you. The operator of Colonial Pipeline fell prey to a ransomware attack on Friday, forcing pipeline operations to stop. The East Coast is also likely to import more waterborne fuel, and spot shortages will start to take place in parts of the Southeast. Colonial Pipeline operates one of the United States’ most crucial pieces of infrastructure: a 5,500-mile-long pipeline system that runs between Texas and New York. Colonial announced the pipeline was repaired on Aug. 19. A cyberattack forced the shutdown of 5,500 miles of Colonial Pipeline's sprawling interstate system, which carries gasoline and jet fuel from Texas to New York. A security analyst says the event shows the vulnerability … Update — Sunday, May 9, 5:10 p.m. On May 7, Colonial Pipeline Company learned it was the victim of a cybersecurity attack and has since determined that the incident involved ransomware. A Division of NBCUniversal. The hack on Colonial Pipeline is … Colonial Pipeline said Sunday that it was still working on a plan to restart the nation's largest fuel pipeline and would once it is "safe to do so, and in full compliance with the approval of all federal regulations." The market is responding 'cautiously' to the Colonial Pipeline outage: GasBuddy, shut since Friday after a cybersecurity attack. President Biden said during remarks Monday that there is currently "no evidence" that Russia is involved in the cyberattack. "There's really been no news," he told CNBC's "Street Signs Asia" on Monday. "If motorists do panic and rush out to fill up that could make prices spike more significantly and make outages more severe.". Homeland Security Advisor and Deputy National Security Advisor Elizabeth Sherwood-Randal said during a White House press briefing Monday that the Biden administration is assisting Colonial through a "whole of government effort" involving a slew of agencies being led by the Department of Energy. it's not clear how long the outage will last. "Perhaps the federal government doesn't yet think that that is necessary.". Neuberg demurred when asked if Colonial had paid a ransom to the hackers, saying, "Colonial is a private company, and we’ll defer information regarding their decision on paying a ransom to them. He added that barges could be used to transport the refined crude products, but the Jones Act would need to be waived. "In the day or two ahead, we could start to see products running low or completely out in some of these affected regions," he said. The attack on Colonial Pipeline also comes after the Biden administration issued a wide range of sanctions against Russia last month in retaliation for … The Alpharetta, Georgia-based company said it hired an outside cybersecurity firm to investigate the nature and scope of the attack and has also contacted law enforcement and federal agencies. The Colonial Pipeline delivers some 45% of the supply of gasoline to the Southeast, with the shutdown now stretching into a third day, motorists may start to experience some challenges. Colonial Pipeline describes itself as the largest refined products pipeline in the United States. She emphasized there is not a supply shortage currently. While federal officials are still trying to determine whether a foreign nation could be involved in the cyberattack, Russian intelligence has been known to cooperate with Eastern European cybercriminals in the past. Get this delivered to your inbox, and more info about our products and services. Fuel tanks are seen at a Colonial Pipeline breakout station in Woodbine, Md., May 8, 2021. All Rights Reserved. The Colonial Pipeline, responsible for the country’s largest fuel pipeline, shut down all its operations Friday after hackers broke into some of its networks. "They expect resolution of this issue in the near future and shortfalls that will affect the American people are not anticipated," Goldstein said. Per gallon, while heating oil futures rose 0.73 % to $ 65.51 per barrel, 68... Fargo said in a statement Monday that there is currently `` no evidence '' that is! Per gallon, while heating oil futures rose 0.73 % to $ 65.51 per barrel, gaining 68 cents Pipeline. 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