Colonial Pipeline recovers from ransomware attack as it resumes operations

The Colonial Pipeline resumed the movement of a few million gallons of fuel on Thursday, through computer-controlled pumping after a six-day outage. 

In a statement by the owner, Colonial stated that it had commenced product delivery in the majority of the markets it serviced. “We’ve made substantial progress in safely restarting our pipeline system,” it added.

The national average gasoline price was up by 2 cents a gallon to $3.03 on Thursday. This was partly due to a run on gas stations across the Southeast, as reported by Wall Street Journal (WSJ). At the beginning of the year, fuel was priced at $2.25 and has risen as demand increased after last year’s pandemic lows.

U.S. Energy Secretary Jennifer Granholm predicted that gasoline shortages could end in a couple of days as the restart brings in supplies to some hard-hit areas as soon as Thursday. Reuters reported that U.S. had issued a waiver to an undisclosed shipper allowing it to transport gasoline and diesel from the U.S. Gulf Coast to East Coast ports on a foreign-flagged vessel. The U.S. restricts deliveries between domestic ports to U.S.-built and crewed vessels.

Last Friday, a cyberattack against the Colonial Pipeline caused some internal computer systems to be disabled with ransomware. The 5,500-mile long pipeline, which transports at least 45% of the fuel consumed by 14 states and Washington D.C., was shut down, setting off fuel shortages and panic buying in the region. 

This attack is one of the many cyber incidents against U.S. firms and government agencies in the last six months. US officials linked the attack to a gang known as the Darkside. Reuters reported that the ransom amount was undisclosed but Colonial has a type of insurance that covers ransom payments.

Picture Credits : Politico