Top Cybersecurity Risks in the Oil and Gas Industry

Security is essential in any sector, but it’s more pressing in some industries than others. Oil and gas cybersecurity concerns are a great example. While attacks against any organization can cause financial losses, they can disrupt services for thousands — even millions — of people in this business.

The 2021 Colonial Pipeline incident made it clear just how crucial cybersecurity is in this industry. A ransomware attack shut down a pipeline supplying 45% of all fuel used on the East Coast for six days, resulting in widespread gas shortages and consumer panic. Such an event could cause even more damage if it struck during an emergency or shut off energy supplies to critical infrastructure.

Given this sensitivity, it’s important to recognize the biggest cybersecurity risks in the oil and gas industry. Once you understand the most significant threats, it becomes easier to deploy the right defenses.

1. Ransomware

As the Colonial Pipeline attack highlights, ransomware is the biggest oil and gas cybersecurity risk. This disruptive malware takes services offline or steals sensitive data until targets pay a hefty ransom. It’s also shockingly common — experts predict ransomware will strike every two seconds by 2031.

Cybercriminals prefer ransomware because it often causes the most damage, making it easier for them to profit from it. The rise of ransomware-as-a-service has also made this sophisticated malware more accessible. As a result, it will likely only grow more frequent from here.

Most ransomware attacks start as phishing. Because this method means it takes just one mistake to infect a system, it gives cybercriminals a way to work around technical defenses. Of course, criminals can also deliver it through hacking, but that’s much harder.

2. IoT Attacks

Internet of Things (IoT) vulnerabilities are another prominent concern. Many oil and gas companies have embraced IoT devices like smart meters and remote industrial control systems (ICS). While this technology is great for efficiency and cost-effectiveness, it leaves organizations with a larger attack surface.

IoT systems are notoriously risky. They often lack strong built-in protections and may fly under the radar, not seeming like a critical endpoint. However, if IT teams don’t secure them, hackers can use them as gateways to more sensitive devices and data.

Malware attacks against the IoT jumped a whopping 400% in 2023 over 2022. While not all of these incidents happened in the oil and gas industry, the trend highlights how prominent these threats have become.

3. DDoS Attacks

Distributed denial of service (DDoS) attacks are another top oil and gas cybersecurity risk. This involves overwhelming a network with requests so it becomes unavailable to legitimate users.

Artificial intelligence (AI) has made DDoS increasingly threatening. Thanks to this technology, it’s easier than ever for cybercriminals to create an army of bots to overload a gas company’s network. When they do, they can take vital services offline, even opening the door to further attacks like malware injection.

DDoS threats are most famous as a threat to consumer-facing websites, but heavy industries need to worry about them, too. As more mission-critical operations rely on wireless connections and the cloud, DDoS attacks’ potential for damage rises.

4. Supply Chain Vulnerabilities

While internal vulnerabilities may be the most obvious risks to tackle, oil and gas companies must also consider third-party threats. Today’s utility providers rely on many outside parties, like software vendors and material suppliers. Consequently, any gap in these organizations’ security affects the oil and gas businesses themselves.

The SolarWinds attack of 2020 proved how dangerous supply chain vulnerabilities can be. A threat actor infected as many as 18,000 businesses by targeting a single software supplier they had in common. As a regular update rolled out to the users, it carried malware to their devices.

Supply chain threats are challenging to deal with because they’re not the result of your own security missteps. Your internal cybersecurity can be impenetrable, but as long as you rely on someone else, their mistakes could impact your business.

5. Insider Threats

Similarly, insider threats pose a significant risk to the oil and gas industry. These are dangerous because many companies focus on perimeter security — stopping things from getting in — but this doesn’t account for users who already have access.

Insider attacks usually don’t come from malicious employees. Rather, they stem from simple mistakes. A worker may click on a link they believe is normal but actually installs ransomware on the system. Phishing is the most common example, as it’s easy and surprisingly effective — 84% of professionals fall for it within 10 minutes of receiving a phishing email.

AI has made these threats more concerning, too. Generative tools like ChatGPT help criminals craft more convincing social engineering messages in less time, so the industry must stay on its toes.

How Can Oil and Gas Cybersecurity Improve?

As these five risks show, oil and gas cybersecurity needs to improve. This starts with better employee training. Human error accounts for much of the industry’s vulnerability, so companies should train all workers to spot phishing attempts and use strong passwords. Regular refresher training and attack simulations will help everyone stay alert.

The oil and gas sector should also capitalize on AI. Cybersecurity automation reduces incidents of human error and can detect and contain suspicious behavior in real-time to mitigate the damage if something does get through. These speedy response times are particularly helpful for DDoS attacks and catching compromised insider accounts.

Oil and gas businesses need to consider their IoT adoption, too. All smart devices should come from manufacturers that meet high standards. Encrypting all IoT traffic and requiring multi-factor authentication to access these endpoints are other essential steps.

Similarly, the industry must pay greater attention to the supply chain. Utility companies should only do business with partners with widely recognized industry security certifications. Even then, they should restrict permissions so that every party can only access the systems and data they need to do their job.

Oil and Gas Cybersecurity Risks Demand Attention

The oil and gas industry faces some unique challenges, but improvement is possible. Once organizations in the sector recognize their biggest risks, they can take more informed steps to prevent attacks.

Oil and gas cybersecurity must evolve as its threats change. While this is far from easy, it’s crucial to keep the industry and those who rely on it safe.