>Same placements and everything. >>Unbelievable.
MARIA: WELCOME BACK THE >>Unbelievable.
MARIA: WELCOME BACK THE
CYBERTHREAT TO ENERGY,
INFRASTRUCTURE, THE LARGEST
PETROLEUM PIPELINE BETWEEN
TEXAS AND NEW YORK, IS OUT OF
COMMISSION THIS MORNING,
FOLLOWING A CYBERATTACK
JOINING ME RIGHT NOW HEAD OF
PETROLEUM ANALYSIS GASBUDDY
PATRICK, THANKS VERY MUCH FOR
BEING HERE REACTION TO WHAT IS
TAKINGING PLACE WE STILL DO
NOT KNOW WHEN PIPELINE WILL BE
BACK ONLINE YOUR REACTION TO
ITS IMPACT.
>> GOOD MORNING MARIA.
OUCH.
WE HAVE SEEN MORE AND MORE
BUSINESSES IN THE LAST COUPLE
YEARS, EVEN JUST LAST YEAR OR
TWO, AND THIS ONE IS
PARTICULARLY PAINFUL.
OBVIOUSLY, NOW A MAJOR
PIPELINE THAT SERVES MILLIONS
OF MOTORISTS ON THE EAST COAST
NOW DOWN, AND WE HAVE
VIRTUALLY NO INFORMATION ON
ANY RESTORATION AUTOMOBILES WE
ARE GOING INTO DAY FOUR
STARTING LATE FRIDAY.
WE’RE QUICKLY STARTING TO RUB
UP AGAINST KIND OF SAFETY
NEITHER OF A FEW DAYS OF
GASOLINE SUPPLY, AND REALLY,
NOT MUCH IMPROVEMENT, NOT MUCH
NEWS.
SO WHEN WILL WE SEE THING THE
PIPELINE RETURN TO OPERATION I
THINK THAT IS REALLY, THE
CRITICAL QUESTION RIGHT NOW
THAT WE HAVE TO BE ANSWERED.
>> WHERE ARE YOU SEEING THE
HIGHEST PRIZE RIGHT NOW ACROSS
THE COUNTRY?
>> WELL YOU KNOW A LOT OF THAT
IN WEST COAST, THANKFULLY WE
HAVEN’T SEEN MUCH IMPACT YET
ON PRICE FROM THE COLONIAL
POOIN OUTAGE I TO SEE ISSUES
AHEAD, OF COURSE, CALIFORNIA
OPPOSITE COAST HIGH BECAUSE
KEEP IN MIND HIGH TAXES, AND
CARBON MANAGEMENT PROGRAM.
>> JACK EV JUMP IN JACKIE
YOU’VE COVERED ENERGY OIL FOR
SO LONG, GIVE US YOUR TAKE.
>> I AM LOOKING AT THIS
THINKING PATRICK THIS IS AN
ISOLATED INCIDENT ON THE
COLONIAL PIPELINE MAY NOT HAVE
PUG IMPACT ON PRICES CERTAINLY
NOT LONG TERM BUT HOW
VULNERABLE IS A GRID, BECAUSE
THAT IS SOMETHING THAT WE’VE
BEEN TALKING ABOUT FOR REALLY
LONG TIME, ALL OF A SUDDEN IF
YOU HAVE A COORDINATED ATTACK
YOU CAN DO A LOT MORE DAMAGE.
>> EXACTLY, THAT, I WOULD
THINK THEY REALLY HIT IT, HARD
HERE, BECAUSE COLONIAL
PIPELINE REALLY IS A MAJOR
ARTERY ONE OF THE FIE MAIRNL
ART READS THROUGH THIS AREA,
YOU LOOK AT OTHER AREAS OF THE
COUNTRY MANY CASES, EAST OF
THE ROCKIES REDUNNEDANCY HERE
WITH COLONIAL PIPELINE ONE
OPTION WATERBORN BARGES OR
PLANTATION PIPELINE JUST A
FRACTION OF THE SIZE OF THE
COLONIAL PIPELINE IF ANYTHING
WE SAW, HOW VULNERABLE THE
REGION IS TO THE COLONIAL
PIPELINE OUTAGE IN 2016 WHEN
ONE OF THE LINES SPRUNG A
LEAK, THEN LATER THAT YEAR A
FIRE ERUPTED WE HAVE BECOME
KIND OF ACCUSTOMED TO ISSUES
HERE BUT THE QUESTION IS WHAT
IS GOING TO BE DONE MOVING
FORWARD, A LOT OF GOVERNMENT
SIMULATIONS HAVE BEEN RUN ON
CYBERSECURITY ON CRITICAL
INFRASTRUCTURE LIKE THIS I SAT
THROUGH ONE 2018 RELIVING IN
REAL WORLD IS CERTAINLY
COMPLETELY DIFFERENT.
MARIA: I MEAN THIS ATTACK IS
BLAMED ON RANSOM SEEKING DARK
WEB CRIMINAL ENTERPRISES BUT
WASHINGTON IS NOT EXCLUDED A
SAY IT ACTOR IS INVOLVED WHICH
IS SCARY MOST COMPANIES ARE
INCREASING INVESTMENT IN
CYBERSECURITY FOR SURE, BUT
DOES THIS RAISE THE RISK OF
KEY INFRASTRUCTURE TARGETED
GOING FORWARD AS SUMMER IS
FAST APPROACHING DRIVING TO
INCREASE, WHAT KIND OF A SPIKE
IN GASOLINE PRICES WOULD YOU
EXPECT?
>> WELL, IT, IT IS CONTINGENT
ON HOW LONG THIS PIPELINE
REMAINS OUT I THINK FOR MOST
COUNTRY NOT ANY REAL
SIGNIFICANT PRICING IMPACT, I
THINK IN THE SOUTHEAST REALLY
DEPENDS WE COULD SEE
EXPONENTIAL INCREASE RIGHT NOW
ONLY UP A FEW CENTS A GAL KEEP
IN MIND NATIONALLY WE COULD
SEE MORE LOCALIZED RESPONSES
PRICES COULD JUMP 10 TO 15
CENTS NEXT DAY OR TWO BEYOND
THAT IF THIS PIPELINE DOESN’T
RETURN TO SERVICE YOU KNOW
THERE IS A LOT OF -- OF --
QUITENESS ON THE PART OF THE
ADMINISTRATION ON THE PART OF
COLONIAL PIPELINE THAT MAKES
THIS EVEN POTENTIALLY MORE
WORRISOME POTENTIALLY MAYBE
THEY DON’T WANT TO SAY
ANYTHING EXPOSING THE HOLES IN
SECURITY RIGHT NOW SO WE ARE
WAITING FOR SOMETHING, A
DEVELOPMENT, TO GIVE ANY SORT
OF IDEA EITHER WHAT HAPPENED
OR HOW QUICKLY THE RESTORATION
TIME WILL BE THERE IS A LOT OF
PARTIES INVOLVED, BUT, AGAIN,
VIRTUALLY NO NEWS OR UPDATES
ON IT.
>> I MEAN THAT IS THE SCARY
PART WE DON’T KNOW, HOW LONG,
THIS OUTAGE WILL GO WHETHER OR
NOT IT WILL BE EXTENDED OUTAGE
WE WILL KEEP WATCHING PATRICK
GREAT TO GET YOUR INSIGHTS WE