Colonial Pipeline, key U.S. fuel artery, shut after cyberattack

May 08, 2021 1:09 PM ETAlphabet Inc. (GOOG), XLE, SHLXXLE, GOOG, SHLXBy: Carl Surran, SA News Editor302 Comments
  • The Colonial Pipeline, the 5,500-mile pipeline system that takes fuel from refineries on the U.S. Gulf Coast to the New York-New Jersey metro area, has been forced to temporarily halt all operations because of a cyberattack.
  • The attack occurred Friday and also affected some of its information technology systems.
  • Colonial Pipeline is the largest refined products pipeline in the U.S., transporting 100M-plus gallons per day, or 45% of the fuel consumed on the East Coast.
  • ETF: XLE
  • The precise nature of the attack is not yet clear, including who launched it and the motives.
  • Cybersecurity firm FireEye (NASDAQ:FEYE) reportedly is investigating the attack.
  • The impact of the attack on fuel supplies and prices depends on how long the pipeline is down, oil analyst Andy Lipow says: An outage of a day or two would be minimal, but an outage of five or six days could causes shortages and price hikes, particularly in an area stretching from Alabama to the Washington, D.C., area.
  • Colonial Pipeline is owned by Shell Midstream Partners (NYSE:SHLX) and others.

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