Fuel Shortage Hits Southeast U.S. As Colonial Pipeline Works To Get Back Up

0
Fuel Shortage Hits Southeast U.S. As Colonial Pipeline Works To Get Back Up
andreas160578 / Pixabay

One of the biggest fuel pipelines in the U.S. remains shut down following a ransomware cyberattack, resulting in a fuel shortage in the southeastern part of the country. Hackers targeted Colonial Pipeline, which transports over 100 million gallons of gas and other fuel every day from Houston to the New York Harbor.

Get The Full Warren Buffett Series in PDF

Get the entire 10-part series on Warren Buffett in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues

Q1 2021 hedge fund letters, conferences and more

Fuel shortage in the Southeast

The shutdown of Colonial Pipeline is now on its fifth day. On Friday, the company suspended all operations after being hit by a ransomware attack that could be one of the costliest in U.S. history. Colonial said on Monday that it hopes to have most of its operations back up and running by the weekend, but in the meantime, a fuel shortage has struck the southeastern U.S.

Seth Klarman’s 2021 Letter: Baupost’s “Never-Ending” Hunt For Information

Baupost's investment process involves "never-ending" gleaning of facts to help support investment ideas Seth Klarman writes in his end-of-year letter to investors. In the letter, a copy of which ValueWalk has been able to review, the value investor describes the Baupost Group's process to identify ideas and answer the most critical questions about its potential Read More

Citing GasBuddy analyst Patrick DeHaan, the New York Post reports that almost 8% of gas stations in Virginia were out of fuel by early this morning. Additionally, almost 5% of stations in North Carolina, more than 3% of stations in Georgia, and more than 2% of Florida gas stations are also out of fuel.

Due to the fuel shortage, North Carolina Gov. Roy Cooper declared a state of emergency on Monday in an attempt to make sure the state would have plenty of fuel. Many drivers in the Southeast have been buying extra fuel out of panic, which has exacerbated the shortage. Demand for gas in Florida, Virginia, North Carolina, South Carolina, and Georgia jumped 40%.

The latest on the cyberattack

According to ABC News, the Federal Bureau of Investigation said in a statement on Monday that hackers used Darkside ransomware to target Colonial Pipeline. The agency added that it would keep investigating in conjunction with the company and government partners.

Darkside is a criminal organization that operates in Eastern Europe, and investigators are trying to figure out if any country was involved in the cyberattack. Some news reports have suggested that Russia may have been involved, as Moscow has been known to work with Eastern European hackers previously. President Joe Biden said on Monday that there's "no evidence" that Russia was involved, "although there is evidence that the actors' ransomware is in Russia."

Colonial Pipeline issued a statement on Monday, saying that it's working on a phased plan to gradually return to service with "the goal of substantially restoring operational service by the end of the week." It also will provide more updates as the restoration of service progresses.

Updated on

Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at [email protected]
Previous article Gold Jumps above $1,800. What’s Next?
Next article Bitcoin’s After Party Is At Ethereum

No posts to display