Will the Cyberattack on Colonial Pipeline Affect Your Power Prices?
Here at APPI Energy, you'll often hear us say that our team of experts deals with 'all things energy,' which is why we stay on top of any and all energy-related news. Many of you may have already heard about the recent cyberattacks on the Colonial Pipeline and may be wondering if and how it could affect your power and natural gas pricing.
To recap, on May 7, operations were halted on the Colonial Pipeline to manage and contain the effects of a cyberattack. The Colonial Pipeline spans from the U.S. Gulf Coast to the East Coast for transportation of fuels and other refined products. The pipeline carries roughly 45% of the fuel consumed along the East Coast, but is primarily used for gasoline, diesel and jet fuel, not natural gas. With that in mind, while some areas of the country may experience effects at the gas pumps, if operations return to normal as expected by the end of the week, there will be no lasting impact on pricing. It is important to note however that the event could trigger and increased need for cybersecurity within the entire energy industry, which could bring with it higher costs as companies and utilities invest in additional IT security measures.
For more, check out the EIA's update, found here.