The Minister of Commerce says "all fingers on deck" to avert provide disruptions after a cyber assault on the pipeline
Storage tanks stand at the intersection and terminal of the Colonial Pipeline Co. Pelham in Pelham, Alabama, USA on Monday, September 19, 2016.
Luke Sharrett | Bloomberg | Getty Images
US Commerce Secretary Gina Raimondo said Sunday the federal government was working to avoid disruptions to supplies after Colonial Pipeline, the operator of the country's largest fuel pipeline, temporarily suspended all operations on Friday due to a ransomware attack.
"This is something that companies have to worry about now," Raimondo said during an interview on CBS "Face the Nation". "Unfortunately, such attacks are becoming more common. They are here to stay."
President Joe Biden was told about the ransomware attack and the F.B.I. said it was working closely with Colonial Pipeline and government partners to address the situation.
The Department of Energy monitors potential impacts on fuel supplies, and the Department of Homeland Security's Agency for Cybersecurity and Infrastructure Security coordinates with the company.
Colonial Pipeline announced Friday that it was "the victim of a cybersecurity attack" and has since shut down 5,500 miles of pipeline that carries nearly half of the east coast's fuel supplies, raising fears of a spot shortage of gasoline, diesel and jet fuel.
"At the moment everything is fine," said Raimondo. "We are working closely with the company, state and local authorities to ensure they are back to normal operations as quickly as possible and that there are no disruptions in supply."
Secretary of Commerce Gina Raimondo testifies before the Senate Funds Committee during a hearing in the Dirksen Senate office building on Capitol Hill in Washington, DC on April 20, 2021.
Chip Somodevilla | Pool | Reuters
The company connects refineries on the Gulf Coast to more than 50 million people in the southern and eastern United States, according to its website.
The final impact of the attack on fuel prices is unclear as there is no schedule for Colonial to resume operations, according to Bernadette Johnson, senior vice president of energy and renewable energies at Enverus. Johnson predicted a short-term spike in refined product prices in the face of a short-term outage.
"Refined product storage in both the USGC and the Northeast can mitigate the effects of a short-term event," Johnson said on Saturday.
However, according to John Kilduff, a partner with Again Capital in New York, if the shutdown persists, fuel shortages in the country could develop rapidly. Kilduff predicted that gas prices will skyrocket on Sunday night with the opening of futures trading if the company does not resume business by then.
Johnson agreed: "If this outage continued for an extended period of time, there would be product shortages in the Northeast and a glut of products in the USGC that would affect prices across the country," she said.
Gas futures rose 0.6% to $ 2.1269 a gallon and diesel futures rose 1.1% to $ 2.0106 a gallon on the New York Mercantile Exchange on Friday.