FILE - In this Sept. 20, 2016 file photo vehicles are seen near Colonial Pipeline in Helena, Ala. A major pipeline that transports fuels along the East Coast says it had to stop operations because it was the victim of a cyberattack. Colonial Pipeline said in a statement late Friday that it “took certain systems offline to contain the threat, which has temporarily halted all pipeline operations, and affected some of our IT systems.” (AP Photo/Brynn Anderson, File)

Pipeline hit by cyberattack could be back by week’s end

Pipeline hit by cyberattack could be back by week’s end

WASHINGTON — The operator of a major U.S. pipeline hit by a cyberattack said Monday it hopes to have service mostly restored by the end of the week.

Colonial Pipeline offered the update after revealing that it had halted operations because of a ransomware attack the FBI has linked to a criminal gang.

The ransomware attack on the pipeline, which the company says delivers roughly 45% of fuel consumed on the U.S. East Coast, raised concerns that supplies of gasoline, jet fuel and diesel could be disrupted in parts of the region if the disruption continues.

At the moment, though, officials said there is no fuel shortage.

The Colonial Pipeline transports gasoline and other fuel through 10 states between Texas and New Jersey, according to the company.

Colonial is in the process of restarting portions of its network. It said Sunday that its main pipeline remained offline, but that some smaller lines were operational. The company has not said when it would completely restart the pipeline.

“The time of the outage is now approaching critical levels and if it continues to remain down we do expect an increase in East Coast gasoline and diesel prices,” said Debnil Chowdhury, IHS Markit Executive Director. The last time there was an outage of this magnitude was in 2016, he said, when gas prices rose 15 to 20 cents per gallon. But the Northeast had significantly more local refining capacity at that time, potentially intensifying any impact.

Meanwhile, the FBI on Monday said the ransomware attack had been carried out by a criminal gang known as DarkSide, which cultivates a Robin Hood image of stealing from corporations and giving a cut to charity.

In response to the attack, the Biden administration loosened regulations for the transport of petroleum products on highways as part of an “all-hands-on-deck” effort to avoid disruptions in the fuel supply.

If the pipeline outage persists, the industry may want to turn to barges to transport fuel, but that could require a waiver of the Jones Act, a U.S. maritime law that requires products shipped between U.S. ports to be moved by American-flagged ships.

The pipeline utilizes both common and custom technology systems, which could complicate efforts to bring the entire network back online, according to analysts at Third Bridge.

Gasoline futures ticked higher Monday. Futures for crude and fuel, prices that traders pay for contracts for delivery at some point in the future, typically begin to rise each year as the driving season approaches. The price you pay at the gas pump tends to follow.

The average U.S. price of regular-grade gasoline has jumped 6 cents over the past two weeks, to $3.02 per gallon, which is $1.05 higher than it was a year ago. Those year- ago numbers are skewed somewhat because the nation was going into lockdown due to the pandemic.

The attack on the Colonial Pipeline could exacerbate the upward pressure on prices if it is unresolved for a period of time.

Eric Tucker, Cathy Bussewitz And Alan Suderman, The Associated Press

Pipeline

Just Posted

The City of Red Deer sits at 249 active cases of the virus, after hitting a peak of 565 active cases on Feb. 22. (Black Press file image)
Red Deer down to 119 active COVID-19 cases

Province identifies 179 new cases Saturday

Red Deer Emergency Services responded to an explosion at a duplex on Rupert Crescent Saturday morning. (Photo by Sean McIntosh/Advocate staff)
Firefighters respond to explosion in Red Deer early Saturday morning

There was an explosion at a Red Deer duplex early Saturday morning.… Continue reading

Terry Betts, of Kananaskis, looks at the vehicle he was hoping to sell during the Quick Times Red Deer Swap Meet in the Westerner Park parking lot Saturday. (Photo by Sean McIntosh/Advocate staff)
Quick Times Red Deer Swap Meet held outdoors

A big automotive swap meet was held outdoors this year in Red… Continue reading

The Alberta Sports Hall of Fame and Museum is set to re-open on July 2. (File Photo)
Alberta Sports Hall of Fame and Museum to reopen Monday

The Alberta Sports Hall of Fame and Museum will reopen for visitors… Continue reading

Huzaifa (left), Saif (middle) and Zoya (right) were among the 60 or so Red Deerians who participated in a vigil for the victims of a recent terrorist attack that killed four people in London Ont. (Photo by BYRON HACKETT/Advocate Staff)
Red Deer vigil honours victims of London, Ont. terrorist attack

About 60 people gathered at the corner of 49 Ave. and 50… Continue reading

A man wears a face mask as he walks by a sign for a COVID-19 vaccination site in Montreal, Sunday, May 16, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
Canada paid a premium to get doses from Pfizer earlier than planned

OTTAWA — Canada paid a premium to get more than 250,000 doses… Continue reading

The Kamloops Indian Residential School in Kamloops, B.C., is shown in this 1930 handout photo. HO — Deschatelets-NDC Archives
Calls grow for Ottawa to review settlement decisions for residential school survivors

Lawyer Teri Lynn Bougie still cries when she talks about the final… Continue reading

Syringes are readied at a COVID-19 mobile vaccination clinic for members of First Nations and their partners, Friday, April 30, 2021 in Montreal. Most of the federal contracts for COVID-19 vaccines allow for Canada to donate some of its doses to other countries or international aid organizations and in at least three cases, for the doses to be resold.THE CANADIAN PRESS/Ryan Remiorz
Canada’s vaccine contracts allow for doses to be donated, in some cases resold

OTTAWA — Most of the federal contracts for COVID-19 vaccines allow for… Continue reading

Grand Chief Stewart Phillip, President of the Union of British Columbia Indian Chiefs, responds to the report on the National Inquiry into Missing and Murdered Indigenous Women and Girls, in Vancouver, on Monday June 3, 2019. As stories of the horrors of residential schools circulate after the Tk'emlups te Secwepemc First Nation announced it had located what are believed to be the remains of 215 children, Grand Chief Stewart Phillip of the Union of B.C. Indian Chiefs said he feels a connection with the former students. THE CANADIAN PRESS/Darryl Dyck
Two sides of the same coin: Ex-foster kids identify with residential school survivors

VANCOUVER — As stories of the horrors of residential schools circulate after… Continue reading

A woman sits and weeps at the scene of Sunday's hate-motivated vehicle attack in London, Ont. on Tuesday, June 8, 2021. Four members of a family in London, Ont., are set to be buried today. The public has been invited to help celebrate the lives of Talat Afzaal, 74, her son Salman Afzaal, 46, his wife Madiha Salman, 44, and their 15-year-old daughter Yumna Salman.THE CANADIAN PRESS/ Geoff Robins
Funeral to be held today for London family killed in attack

LONDON, Ont. — Four members of a Muslim family killed in what… Continue reading

Canadian Prime Minister Justin Trudeau and United States President Joe Biden listen to United Kingdom Prime Minister Boris Johnson deliver opening remarks at a plenary session at the G7 Summit in Carbis Bay, United Kingdom Friday June 11, 2021. THE CANADIAN PRESS/Adrian Wyld
Trudeau to discuss foreign policy with G7 leaders at second day of summit meeting

CARBIS BAY, CORNWALL, ENGLAND — Foreign policy is on the agenda for… Continue reading

Multivitamins are shown on the packaging line at the Pfizer plant in Montreal, Thursday, July 12, 2012. THE CANADIAN PRESS/Graham Hughes
Canadian drug companies want new pricing regs delayed again until after pandemic

OTTAWA — Almost three dozen Canadian pharmaceutical companies made a direct appeal… Continue reading

In this file photo, a lotto Max ticket is shown in Toronto on Monday Feb. 26, 2018. (By THE CANADIAN PRESS)
No winning ticket for Friday’s $70 million Lotto Max jackpot

TORONTO — The massive $70 million dollar Lotto Max jackpot remained unclaimed… Continue reading

Most Read