The Colonial Pipeline had to be shut down recently due to a hack of its system and it could mean trouble for consumers.
Here’s everything investors need to know about the Colonial Pipeline hack 2021 and what it will likely cause.
- The most important thing to note is that the Colonial Pipeline is the largest fuel pipeline in the U.S.
- The pipeline carries fuel from across states in the South and East of the country.
- This hack happened on Friday, which is when the pipeline had to be shut down.
- It’s also worth pointing out that the pipeline is still closed as of this writing.
- DarkSide is the malware behind the hack and it belongs to a Russian cybercrime organization of the same name.
- This software seeks out systems to infect and encrypts the data until a ransom is paid.
- The group only goes after organizations outside of the U.S. with the malware not encrypting devices with Russian as the default language.
- To combat the Colonial Pipeline hack, the U.S. government enacted an emergency order.
- This allows for fuel transportation drivers to take longer shifts without sleep than what regulations normally allow.
- The emergency order lasts until June 8 and can be extended.
- The goal here is to keep fuel coming to the South and Eastern U.S. without disruptions.
- However, issues may still occur.
- The includes a possible lack of fuel for some customers, as well as rising gas prices.
- It’s also likely to affect various oil stocks.
- That includes APA (NASDAQ:APA), BP (NYSE:BP), ConocoPhillips (NYSE:COP), and others.
- Investors can check out other major oil stocks to watch at this link.
Gaurav Sharma, an independent oil market analyst, told BBC the following.
“Unless they sort it out by Tuesday, they’re in big trouble. The first areas to be hit would be Atlanta and Tennessee, then the domino effect goes up to New York.”
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.