Gas prices to spike on the East Coast

[Shaun @ Tru6]

While cyberattackers are becoming bolder and more sophisticated, I'm surprised something like a pipeline would be successfully attacked and shut down.

Hacked Pipeline May Stay Shut for Days, Raising Concerns About Fuel Supply

While the impact has been limited so far, some energy analysts warned of possible shortages and higher prices as the suspension continues.

By Clifford Krauss
May 9, 2021

HOUSTON — The operator of the largest petroleum pipeline between Texas and New York, which was shut down after a ransomware attack, declined on Sunday to say when it would reopen, raising concerns about a critical piece of infrastructure that carries nearly half of the East Coast’s fuel supplies.

While the shutdown has so far had little impact on supplies of gasoline, diesel or jet fuel, some energy analysts warned that a prolonged suspension could raise prices at the pump along the East Coast and leave some smaller airports scrambling for jet fuel.

Colonial Pipeline, the pipeline operator, said on Sunday afternoon that it was developing “a system restart plan” and would restore service to some small lines between terminals and delivery points but “will bring our full system back online only when we believe it is safe to do so.”

The company, which shut down the pipeline on Friday, acknowledged on Saturday that it had been the victim of a ransomware attack by a criminal group, meaning that the hacker may hold the company’s data hostage until it pays a ransom. Colonial Pipeline, which is privately held, would not say whether it had paid a ransom. By failing to state a timeline for reopening on Sunday, the company renewed questions about whether the operations of the pipeline could still be in jeopardy.

The shutdown of the 5,500-mile pipeline was a troubling sign that the nation’s energy infrastructure is vulnerable to cyberattacks from criminal groups or nations.

Energy experts predicted that traders would view the company’s announcement on Sunday as a sign that the pipeline would remain shut at least for a few days. Tom Kloza, global head of energy analysis at Oil Price Information Service, said he thought gasoline futures would rise 2 to 3 percent beginning Sunday night and Monday.

Nationwide, the AAA motor club reported that the average price of regular gasoline did not budge from $2.96 a gallon from Saturday to Sunday. New York State prices remained stable at $3, and in some Southeastern states like Georgia, which are considered particularly vulnerable if the pipeline does not reopen quickly, prices moved up a fraction of a penny a gallon.

The pipeline attack came at the beginning of the summer driving season, when fuel prices traditionally rise anyway.

“Even a temporary shutdown will likely drive already rising national retail gas prices over $3 per gallon for the first time since 2014,” said Jay Hatfield, chief executive of Infrastructure Capital Management and an investor in natural gas and oil pipelines and storage.

Goldman Sachs, in a report on Sunday, said that since there was no physical damage to the pipeline, higher fuel prices on the East Coast were “likely to be transient.”

[asphaltgambler]

Odd thing is the prices rise at the pump with the same fuel in the storage tanks directly underground that has already paid for................

[flatbutt]

Any crisis, manufactured or not will be used to increase profits.

[pavulon]

Seems any network being hacked and held by ransom ware today should be highly suspect for insiders providing information to hackers.

[Zeke]

We hit 5 bucks/gal for 91 two weeks before any computer breach.

And employers want people to jump in their cars and return to work in person.

[drcoastline]

It's already happening here. Gas was under $2 in January over $3 now. Summer is on the way we always a get a spike. Add the Cyber attack and now the pipeline shutdown we should be at $5 in no time.

[2.7RS]

Time to buy a Tesla

E-tron

Or duracell car.......

[widgeon13]

It’s a given, holidays and summer always drive up gas prices.

[Sooner or later]

in 1970 gas was 36 cents a gallon. A true value. It was so cheap we drove gas guzzling land yachts.
That 36 cents adjusted to inflation is $2.45 in 2021.. And that $2.45 includes far higher state and federal taxes than in 1970.

Fuel prices over the last year were a true bargain and an anomaly.

[URY914]

Originally Posted by Sooner or later

in 1970 gas was 36 cents a gallon. A true value. It was so cheap we drove gas guzzling land yachts.
That 36 cents adjusted to inflation is $2.45 in 2021.. And that $2.45 includes far higher state and federal taxes than in 1970.

Fuel prices over the last year were a true bargain and an anomaly.

I agree. Try to find something else that is as cheap as gas per gallon. Maybe water at Costco. For a product that costs a lot to refine it sure is cheap.

[Shaun @ Tru6]

We are at $2.65 for regular down the street. Will be interesting to see what it climbs to.

[vash]

Spike? you call that a spike?

over $3 is considered, "awww cute" around here.

good luck guys...i am just joking, and feeling sour about our own perma-spike here in the bay area.

[vash]

on a side note. i am however feeling better about my own name. it could be worse. "Clifford Krause"

[Bugsinrugs]

Just paid $2.51 a gallon in Salem , Virginia. Compared to $4.00 in California

[cabmandone]

This is why employees shouldn't be surfing porn sites! Now my gas is gonna cost more.

[cabmandone]

Originally Posted by Shaun @ Tru6

We are at $2.65 for regular down the street. Will be interesting to see what it climbs to.

We're at 2.95 for regular and I have a refinery less than 40 minutes from my house!

[Scott Douglas]

I'll be lucky if I can get regular for under $4/gal and I've got a lot more than one refinery within 40 minutes of my house too.

[stevej37]

Paid $2.63/gal for reg. this am.

[Scott Douglas]

Originally Posted by stevej37

Paid $2.63/gal for reg. this am.

Go ahead, rub it in.


We have better weather. All the time.

[Shaun @ Tru6]

^^^That's almost as cold as a Michigan winter.