The Biden administration has invoked emergency powers as part of an “all-hands-on-deck” effort to avoid fuel shortages after the worst-ever cyber-attack on US infrastructure shut down a crucial pipeline supplying the east coast.
The federal transport department issued an emergency declaration on Sunday to relax regulations for drivers carrying gasoline, diesel, jet fuel and other refined petroleum products in 17 states and the District of Columbia. It lets them work extra or more flexible hours to make up for any fuel shortage related to the pipeline outage.
Commodity traders are also understood to be scrambling to secure tankers to deliver fuels by sea rather than pipeline. At least six tankers could be diverted across the Atlantic to bring gasoline from Europe to the US, according to reports. Others plan to use idle fuel tankers as temporary, floating gasoline storage in the Gulf of Mexico in case the outage is prolonged and threatens to drive fuel prices higher.
Experts said on Sunday that gasoline prices were unlikely to be affected if the pipeline was back to normal in the next few days but that the incident should serve as a wake-up call to companies about the vulnerabilities they face.
The pipeline, operated by Georgia-based Colonial Pipeline, carries about 2.5m barrels of gasoline and other fuel from Texas to the north-east a day. It delivers roughly 45% of fuel consumed on the east coast, according to the company.
It was hit by what Colonial called a ransomware attack, in which hackers typically lock up computer systems by encrypting data, paralysing networks, and then demand a large ransom to unscramble it.
On Sunday, Colonial Pipeline said it was actively in the process of restoring some of its IT systems. It said it remained in contact with law enforcement and other federal agencies, including the energy department, which is leading the federal government response.
The company has not said what was demanded or who made the demand.
However, two people close to the investigation, speaking on condition of anonymity, identified the culprit as DarkSide, which is one of the ransomware gangs in a criminal industry that has cost western nations tens of billions of dollars in the past three years.
DarkSide claims that it does not attack hospitals and nursing homes, educational or government targets, and that it donates a portion of its take to charity. It has been active since August and, typical of the most potent ransomware gangs, is known to avoid targeting organisations in former Soviet bloc nations.
Colonial did not say whether it has paid or was negotiating a ransom, and DarkSide did not announce the attack on its dark website. The lack of acknowledgment usually indicates a victim is either negotiating or has paid.
(Except for the headline, this story has not been edited by TTE staff and is published from a syndicated feed.)
