Canada’s Oil And Gas Sector: Urgent Action Needed On Cybersecurity
A new report by the Canadian Centre for Cyber Security highlights the potential for devastating consequences similar to the Colonial Pipeline ransomware attack in the US
Krishna Murthy July 21, 2024
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Canada’s oil and gas sector is a cornerstone of its economy, contributing approximately $120 billion, or about 5 per cent of the country’s Gross Domestic Product (GDP). This sector not only fuels economic growth but also plays a critical role in national security, as it supports essential services such as heating, transportation, and electricity generation. However, the increasing digital transformation of Operational Technology (OT) within this sector has made it more susceptible to cyber threats, says a report by the Canadian Centre for Cyber Security.
Key Findings of Canadian Centre for Cyber Security’s Report
According to a survey conducted by Statistics Canada, about 25 per cent of all Canadian oil and gas organizations reported experiencing a cyber incident in 2019. This figure represents the highest rate of reported incidents among all critical infrastructure sectors, highlighting the urgent need for enhanced cybersecurity measures in Canada. The digital transformation of OT systems, while beneficial for management and productivity, has expanded the attack surface for cyber actors, exposing these systems to a variety of cyber threats.
Source: Representational pic in report
The Canadian Centre for Cyber Security has identified that medium- to high-sophistication cyber threat actors are increasingly targeting organizations indirectly through their supply chains. According to the report, this tactic allows attackers to obtain valuable intellectual property and information about the target organization’s networks and OT systems. The reliance of large industrial asset operators on a diverse supply chain—including laboratories, manufacturers, vendors, and service providers—creates critical vulnerabilities. Cyber actors can exploit these vulnerabilities to gain access to otherwise protected IT and OT systems.
The report emphasizes that cybercriminals motivated by financial gain pose the most significant threat to the oil and gas sector. It says that Business Email Compromise (BEC) schemes and ransomware attacks are particularly prevalent. While BEC is likely more common and costly than ransomware, the latter remains a primary concern due to its potential to disrupt the supply of oil and gas to customers.
The underground cybercriminal ecosystem is continuously evolving, with ransomware-as-a-service (RaaS) models allowing even less skilled attackers to launch sophisticated attacks, summarized the report. This evolution has led to an increase in successful incidents targeting the sector.
The report cites the Colonial Pipeline ransomware cyberattack in May 2021 and says that the incident serves as a stark example of the potential consequences of such cyber incidents. The attack forced the shutdown of one of the largest gasoline, diesel, and jet fuel pipelines in the U.S., leading to significant disruptions in fuel supply, panic buying, and short-term price spikes. The report warns that similar incidents could occur in Canada, jeopardizing the supply of essential products and services.
Financial implications of Data Breach in Millions: Report
The report also highlights the financial implications of cyber threats. The cost of a data breach can range significantly, with estimates suggesting that it can reach millions of dollars depending on the size and nature of the organization. The potential for disruption or sabotage of OT systems poses a costly threat to owner-operators of large OT assets, with implications for national security, public safety, and the economy.
Furthermore, the Canadian Centre for Cyber Security has noted that the oil and gas sector attracts considerable attention from financially motivated cyber threat actors due to the high value of its assets. Cybercriminals are not only targeting operational systems but also valuable intellectual property, business plans, and client information. The report underscores the importance of protecting these assets, as the disruption of operations could have far-reaching consequences.
In light of these threats, the report calls for organizations within the oil and gas sector to prioritize cybersecurity investments and adopt a proactive approach to risk management. Continuous training and awareness programs for employees are essential to mitigate risks associated with human error, which is often a significant factor in successful cyber attacks.
The Canadian Centre for Cyber Security emphasizes the need for collaboration between public and private sectors to combat cyber threats effectively. By sharing information and best practices, organizations can better prepare for and respond to cyber incidents.
In conclusion, the findings from the Canadian Centre for Cyber Security highlight the pressing need for enhanced cybersecurity measures within Canada’s oil and gas sector. With cyber threats on the rise, it is imperative for organizations to take proactive steps to safeguard their operations and ensure the resilience of this critical infrastructure. The time to act is now, as the stakes have never been higher in the fight against cybercrime.
