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Colonial Pipeline launches restart after six-day shutdown due to ransomware attack

Colonial Pipeline launches restart after six-day shutdown due to ransomware attack
I want to update everyone on the ransomware cyberattack that impacted on the Colonial pipeline over this past week. As of yesterday evening, colonial has begun restarting the flow of refined products in the pipeline this morning. Colonial reported that fuel is beginning to flow to the majority of the markets that they service and they should be reaching full operational capacity as we speak as I speak to you right now. That is good news. But I want to be clear, will not feel the effects at the pump immediately. This is not like flicking on a light switch. This pipeline is 5500 miles long. It had never been fully shut down its entire history and so so fully and we have to, now they have to safely and fully return to normal operations. Uh, it's gonna take some time and there may be some hiccups like I just had along the way here. Still, we expect to see a region by region return to normalcy beginning this weekend and continuing in the next week. In the meantime, I want to update you on what our administration is doing to accelerate this process to mitigate shortages and to protect you from price gouging, protect the american people from Price scouts and all those along the line. First, we relaxed rules for pipeline operators to provide flexibility for emergency personnel, help manually get portions of the pipeline up and running earlier this week. Secondly, over the weekend, we reviewed and work with the company to get a portion of the pipeline system from north Carolina to Maryland to operate under manual control and delivers delivers its existing inventory. In addition, we put in place emergency orders that lifts hours, the hours restrictions and allowed states to lift weight restrictions for tank truck drivers to be on the road. This allows those drivers to work more and carry more fuel to the affected regions. Third, The Environmental Protection Agency issued uh targeted 20 day waiver of standards in several states to give fuel suppliers more flexibility to use available fuels where they're needed, which will boost to fuel supply. And those uh those last two actions have made tens of millions of gallons of additional fuel available each day to be able to be distributed. Put another way the extraordinary measures the administration has taken, we estimate Sent enough gas to stations to fill the tanks over five million vehicles in the last few days. Fourthly, as part of an effort to use every possible means to accelerate fuel deliveries last night and granted a waiver of the jones Act to fuel suppliers. This allows non U. S. Flagged vessels to transport refined fuel products from the gulf of Mexico to affected areas and we'll grant additional waivers if necessary. These steps are temporary, but there remain in place until full service is fully restored. This is a, it's a whole of government response to get more fuel more quickly to where it's needed and to limit the pain being felt by american customers. Now, here's what drives the driver in the States That are affected. Here's what you can do. The drivers don't panic. No one, I know seeing lines at the pumps or gas stations with no gas can be extremely stressful. But this is a temporary situation. Do not get more gas than you need in the next few days. As I said, we expect the situation to begin to improve by the weekend and into early next week. And gasoline supply is coming back online and panic buying will only slow the process. And I also want to say something to the gas stations. Do not, I repeat. Do not try to take advantage of consumers. During this time, I'm going to work with governors, the affected states to put a stop to price gouging wherever it arises. And I'm asking our federal agencies to stand ready to provide assistance to state level efforts to monitor and address any price gouging at the pump. Nobody should be using this situation for financial gain. That's what the hackers are trying to do. That's what they're about, not us, that's not who we are. And as for the people who carried out this attack, the FBI has released details on the attack so others can take steps to prevent from being victimized. Like colonial husband. We do not believe emphasis. We do not believe the Russian government was involved in this attack, but we do have strong reason to believe that the criminals who did the attack are living in Russia, That's where it came from. Where from Russia. We have been in direct communications with Moscow about the imperative for responsible countries to take decisive action against these ransomware networks. We're also going to pursue a measure to disrupt their ability to operate. And our Justice Department has launched a new task force dedicated to prosecuting ransomware hackers to the full extent of the law. And finally, let me say that this event is providing an urgent reminder of why we need to harden our infrastructure and make it more resilient against all threats natural and man made. My administration is continuing to safeguard our critical infrastructure, the majority of which is privately owned and managed like colonial pipeline. Private entities are in charge of their own cybersecurity and we need and we have to we know we know what they need, they need greater private sector investment in cybersecurity. and that's why we launched a new public private initiative in april that is focusing on strengthening cybersecurity in the electric sector for natural gas, for pipelines as well as water systems and other lifeline sectors. And last night I signed an executive order to improve the nation's cybersecurity. It calls for federal agencies to work more closely with the private sector to share information, strengthen cybersecurity practices and deploy technologies that increase reliance against cyberattacks. It outlines innovative ways the government will drive to deliver security and software using federal buying power to jump start the market and improve the products at all americans use to assist in this urgent work of protecting our nation's our nation against cyber attacks. I'm calling on the United States Senate to move quickly to confirm chris Inglis as our national cyber director and jen easterly to be the director of cybersecurity and Infrastructure Security Agency at the Department of Homeland Security in America. We've seen critical infrastructure taken offline by floods, fires, storms, and criminal hackers in texas. Last month, we saw what happens when storms hit power systems that aren't fully modernized or ready to for the threats of extreme weather with tragic results. Now we're seeing the effective criminal hackers with gas lines throughout the southwest of assuming the southeast And we're in a competition with China and the rest of the world to win the 21st century economically And we're not gonna win it, competing with an infrastructure that is out of the 20th century. We need a modern infrastructure. My american jobs plan includes transformative investments and modernizing and securing our critical infrastructure. Later this afternoon, I'll be meeting with Republican senators to discuss ways we can move forward on modernizing infrastructure we have today and building the infrastructure we need for tomorrow. I'm willing to negotiate, as I've indicated yesterday to the House members and to the leadership, but it's clearer than ever that doing nothing is not an option. Again. We expect things to return to normal over the next several days. I will be monitoring colonials progress and the federal government support every step of the way. So stay strong. Help us on the way. We're gonna get through this as we always do as americans. We're gonna do it together. It's going to be quick. God bless you all and may God protect our troops. Mr. President hackers are believed to be living in Russia. At what point does the US start to try to inflict on governments who allow this sort of thing to happen in their territory? We are working to try to get to the place where we have sort of an international standard that governments knowing that criminal activity is happening from their territory. That we all we all move on. Those those criminal enterprises. And I expect that's one of the topics I'll be talking about with with President Putin. Are you the President does not? Are you confident that Putin was not involved? I am confident that I read the report of the FBI accurately and they say they were not. He was not. The government was not Mr. President Wednesday's executive order mentions the colonial pipeline directly. But the press release said it only encourages private sector companies to follow the federal government's lead, which encouragement is good, but in the face of profit, it's kind of sketchy. So what concrete steps is the administration taking to ensure that companies are prepared and held accountable for their cyber issues, cybersecurity issues. You've asked three different questions. and that one thing I think as I understand it, the bottom line is that I cannot dictate that the private companies do certain things relative to cybersecurity. A lot of you are very seasoned reporters. You've been covering this debate up on the capitol hill for before I became president and unrelated to president, trump just a debate internally among senators as to whether or not the government should be insisting and it gets in the privacy issues and a whole range of things. So that's going to be an ongoing negotiation. But I think it's becoming clear to everyone that we have to do more than being done now and the federal government can be significant value added and having that happen. Yes. Are you, will, will you consider doing any kind of retaliatory cyber attacks to shut down these, Are you ruling that out? No. His Prime Minister Netanyahu is doing enough to stop this violence there from escalating. Uh huh. I had a brief conversation with him yesterday and I have my my intelligence community, the Defense Department as well as a the State Department have been in contact with all of their counterparts and not only in Israel but in the region. And one of the things that I have seen thus far is that um there has not been a significant overreaction. The question is how how we get to a point where they get to a point where there is a significant reduction in the attacks, particularly the rocket attacks that are indiscriminately fired into population centers. But I expect I'll be having some more discussions and it wasn't we haven't just spoken with the Israelis, the Egyptians, the Saudi and others. So where it's a work in progress right now? So thank you all so very much. Were you briefed on the fact that the company did I have no comment on that. Thank you
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Colonial Pipeline launches restart after six-day shutdown due to ransomware attack
The Colonial Pipeline is back in action after a six-day shutdown, but widespread gas station outages in the Southeast could linger for days.Industry executives and government officials warned it will take time to refill gasoline supplies depleted by panic-buying, a truck driver shortage and the ransomware attack on the pipeline.As of 7 a.m. ET Thursday, a staggering 71% of the gas stations in North Carolina and 55% in Virginia were without gasoline, according to GasBuddy, a platform that tracks fuel demand, prices and outages. And 49% of the stations in Georgia are without gas.That means all three states only saw "limited overnight improvement" in the availability of gas, according to Patrick De Haan, head of petroleum analysis at GasBuddy.GasBuddy reported major outages in Washington D.C. (47%), South Carolina (54%), Florida (31%), Tennessee (34%) and Maryland (34%).Major cities including Atlanta, Charlotte, Myrtle Beach and Raleigh are seeing "some" improvement in outages, De Haan wrote on Twitter.'Substantial progress' means back to normal by Monday?Operators of the Colonial Pipeline said Thursday morning that they have made "substantial progress" in restarting the pipeline system, adding that fuel has begun flowing to most of the markets it serves. By midday Thursday, they expect every market the pipeline feeds will receive fuel from the system.A map distributed by the company indicated segments of the pipeline that run in North Carolina, Virginia, and Maryland were expected to be operational by noon ET Thursday.Colonial Pipeline launched its restart Wednesday evening after a six-day shutdown caused by a malware attack. Energy Secretary Jennifer Granholm said Thursday the successful restart of the 5,500-mile pipeline "should mean things will return to normal by the end of the weekend."Jones Act waiver grantedOne issue is that the 5,500-mile pipeline flows at just 5 miles per hour, meaning it could take days or even weeks for gasoline, diesel and jet fuel to flow through to most places and refill nearly empty storage, Platts analysts said."We are not out of the woods yet, but the trees are thinning out," Richard Joswich, global head of oil analytics at S&P Global Platts, wrote in an email.At the same time, a massive shortage of truck drivers is snarling the delivery of badly needed fuel to stations in the Southeast."The restarting of the Colonial Pipeline is the beginning of the end of the crisis, not the end of the end of the supply crunch," Michael Tran, managing director of global energy strategy for RBC Capital Markets, said in an email. "With an operational pipeline, the race to logistically replenish regional and localized gas stations is the next step."Oil industry executives urged Americans on Wednesday to not hoard gasoline, warning that panic-buying is exacerbating the situation. Officials said some gas stations blew through days' worth of inventory in mere hours.After pleas from the oil industry, the Biden administration announced late Wednesday it would approve a temporary and targeted waiver of the Jones Act, which requires ships sailing between US ports to be American flagged and domestically built. Homeland Security Secretary Alejandro Mayorkas approved the waiver to an individual company "in the interest of national defense."Allowing foreign vessels to move fuel from the Gulf Coast to the Eastern Seaboard could ease supply constraints.

The Colonial Pipeline is back in action after a six-day shutdown, but widespread gas station outages in the Southeast could linger for days.

Industry executives and government officials warned it will take time to refill gasoline supplies depleted by panic-buying, a truck driver shortage and the ransomware attack on the pipeline.

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As of 7 a.m. ET Thursday, a staggering 71% of the gas stations in North Carolina and 55% in Virginia were without gasoline, according to GasBuddy, a platform that tracks fuel demand, prices and outages. And 49% of the stations in Georgia are without gas.

That means all three states only saw "limited overnight improvement" in the availability of gas, according to Patrick De Haan, head of petroleum analysis at GasBuddy.

GasBuddy reported major outages in Washington D.C. (47%), South Carolina (54%), Florida (31%), Tennessee (34%) and Maryland (34%).

Major cities including Atlanta, Charlotte, Myrtle Beach and Raleigh are seeing "some" improvement in outages, De Haan wrote on Twitter.

'Substantial progress' means back to normal by Monday?

Operators of the Colonial Pipeline said Thursday morning that they have made "substantial progress" in restarting the pipeline system, adding that fuel has begun flowing to most of the markets it serves. By midday Thursday, they expect every market the pipeline feeds will receive fuel from the system.

A map distributed by the company indicated segments of the pipeline that run in North Carolina, Virginia, and Maryland were expected to be operational by noon ET Thursday.

Colonial Pipeline launched its restart Wednesday evening after a six-day shutdown caused by a malware attack. Energy Secretary Jennifer Granholm said Thursday the successful restart of the 5,500-mile pipeline "should mean things will return to normal by the end of the weekend."

Jones Act waiver granted

One issue is that the 5,500-mile pipeline flows at just 5 miles per hour, meaning it could take days or even weeks for gasoline, diesel and jet fuel to flow through to most places and refill nearly empty storage, Platts analysts said.

"We are not out of the woods yet, but the trees are thinning out," Richard Joswich, global head of oil analytics at S&P Global Platts, wrote in an email.

At the same time, a massive shortage of truck drivers is snarling the delivery of badly needed fuel to stations in the Southeast.

"The restarting of the Colonial Pipeline is the beginning of the end of the crisis, not the end of the end of the supply crunch," Michael Tran, managing director of global energy strategy for RBC Capital Markets, said in an email. "With an operational pipeline, the race to logistically replenish regional and localized gas stations is the next step."

Oil industry executives urged Americans on Wednesday to not hoard gasoline, warning that panic-buying is exacerbating the situation. Officials said some gas stations blew through days' worth of inventory in mere hours.

After pleas from the oil industry, the Biden administration announced late Wednesday it would approve a temporary and targeted waiver of the Jones Act, which requires ships sailing between US ports to be American flagged and domestically built. Homeland Security Secretary Alejandro Mayorkas approved the waiver to an individual company "in the interest of national defense."

Allowing foreign vessels to move fuel from the Gulf Coast to the Eastern Seaboard could ease supply constraints.