Posted on: 05. 13. 21
2021 has already been quite a tumultuous year for the oil and gas industry; specifically in the pipeline sector. Last week, the Colonial Pipeline suffered a ransomware attack that temporarily shut down all of the pipeline’s operations.
The Colonial Pipeline is the largest pipeline in the United States and carries more than 100 million gallons of fuel to customers every day. 14 states and seven major airports directly rely on this pipeline, so it’s no surprise that when an issue manages to temporarily halt all operations, people start to get concerned about the nation’s overall gas supply.
Here’s a closer look at what happened with the hack, how long it will take for a normal supply to return, and if this problem is truly something that the average driver has to be concerned about.
What is a Ransomware Hack?
Ransomware attacks are a very prevalent problem around the world. In these situations, a gang of hackers will steal a victim’s data, freeze up their systems, and then force a payment to recover data.
According to an article from New York Magazine, the latest ransomware attack is the largest in history for the oil and gas industry. Since last Friday, the pipeline has been shut down indefinitely, with industry leaders rushing around the clock to ensure that the East Coast and Southern areas the pipeline serves to maintain ample gas supply.
State of Emergencies Declared
As news of the pipeline incident spread, the public began to grow uneasy with regard to the national supply of consumer gasoline. Over the weekend and into the early days of this week, hours-long lines began to form at pumps with many gas stations experiencing shortages after an overwhelming surge in demand.
In fact, the response to the shutdown was so large, that the Department of Transportation declared a state of emergency across 17 states and the DC area. This eased the restrictions on the transportation of fuels to these areas, yet many areas along the East Coast remain in a shortage due to high demand fueled by social concerns.
How Will This Impact Gas in Texas?
Although Texas did experience some gas price increases, there isn’t a sign of a shortage in sight for the Lone Star State. According to a KXAN interview with AAA Texas media representative, Josh Zuber, the shutdown will have little to no impact on actual fuel availability. Zuber says that if there are signs of a shortage in some areas, it is due to a reduction in gas delivery drivers and not the pipeline incident.
Will gas prices increase due to the shutdown? The answer is a mixed yes and no. While Texans may see a 4 cent increase in their petrol, they must also keep in mind that we are headed into a summer season where gas prices naturally begin to rise.
So, in short, while the shutdown may have a significant impact on East Coast supply, it’s currently not necessary for Texans to line up and fill gas cans at their local gas stations.
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