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US pipeline hack revives focus on cybersecurity

  • Market: Coal, Crude oil, Electricity, Natural gas, Oil products
  • 10/05/21

A ransomware attack that halted operations on the 5,500-mile Colonial Pipeline fuel system has reignited debate about whether the federal government should change its cybersecurity oversight for critical energy infrastructure.

Federal oversight of pipeline security resides primarily with the Transportation Security Administration (TSA), which employed roughly 50,000 airport screeners but just six full-time staff in its Pipeline Security Branch as of fiscal year 2018. Critics argue TSA lacks the energy expertise to ensure pipeline operators are protecting their systems from attacks, a task they say the US Energy Department is better equipped to handle.

"Ransomware attack on Colonial Pipeline is one more reminder of the threats facing critical energy infrastructure," US Federal Energy Regulatory Commission (FERC) member Neil Chatterjee said in a post on Twitter. "We must rethink the TSA voluntary approach to cybersecurity."

Cybersecurity experts have warned for years that the government and private companies are failing to adequately protect US critical energy infrastructure, given the risk that a major attack could disrupt or damage facilities for weeks or months. TSA has developed security guidelines for pipeline operators but they remain voluntary.

Pipeline operators have resisted mandatory cybersecurity rules because of concerns they could go out of date quickly. The industry has also warned that proposals to shift pipeline security oversight outside of the TSA, which is part of the US Department of Homeland Security, could create more problems than it solves if it subjects pipelines to overlapping standards.

"What would not be helpful and what we want to avoid no matter what is multiple agencies with overlapping or conflicting authorities," an industry official said.

Pipeline industry groups said they were waiting for more details on the attack. The Association of Oil Pipelines said it would engage in policy discussions as it learns more about what happened and the "lessons for industry to be learned." The Interstate Natural Gas Association of America (INGAA) said it would work with federal agencies to strengthen cybersecurity.

"To be effective, government programs and standards must be nimble enough to adapt to continually-evolving threats, leveraging public-private collaboration and two-way information sharing," INGAA said.

The TSA's Pipeline Security Branch came under criticism in 2018, when the US Government Accountability Office issued a report raising concerns about its staffing levels and limited expertise in cybersecurity. The TSA said today it has added staff and worked with pipeline operators on cybersecurity, but it declined to answer questions about staffing levels.

The federal government is taking some steps to encourage companies to harden their systems against attacks. FERC late last year proposed rules to offer rate-based incentives for public electric utilities that make investments in cybersecurity, such as installing new hardware, expanding worker training and conducting risk assessments.

President Joe Biden said his administration was taking the ransomware attack seriously and aimed to disrupt hacking networks, as he argued that his $2.3 trillion infrastructure plan would offer funds to help "safeguard" critical infrastructure. White House officials today said they were looking into whether to provide guidance to companies on whether to pay ransom to hackers.

"Typically that is a private sector decision, and the administration has not offered further advice at this time," US deputy national security adviser for cyber Anne Neuberger said. "Given the rise in ransomware, that is one area we are definitely looking at now, to say what should be the government's approach to ransomware actors and ransoms overall."


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21/11/24

Cop: EU, four countries commit to 1.5°C climate plans

Cop: EU, four countries commit to 1.5°C climate plans

Baku, 21 November (Argus) — The EU, Canada, Mexico, Norway and Switzerland have committed to submit new national climate plans setting out "steep emission cuts", that are consistent with the global 1.5°C temperature increase limit sought by the Paris Agreement. The EU and four countries made the pledge at the UN Cop 29 climate summit in Baku, Azerbaijan today, and called on other nations to follow suit — particularly major economies. Countries are due to submit new climate plans — known as nationally determined contributions (NDCs) — covering 2035 goals to the UN climate body the UNFCCC by early next year. The EU, Canada, Mexico, Norway and Switzerland have not yet submitted their plans, but they will be aligned with a 1.5°C pathway, EU climate commissioner Wopke Hoekstra said today. The Paris climate agreement seeks to limit the global rise in temperature to "well below" 2°C and preferably to 1.5°C. Canada's NDC is being considered by the country's cabinet and will be submitted by the 10 February deadline, Canadian ambassador for climate change Catherine Stewart said today. Switzerland's new NDC will also be submitted by the deadline, the country's representative confirmed. Pamana's special representative for climate change Juan Carlos Monterrey Gomez also joined the press conference today. Panama, which is designated as carbon negative, submitted an updated NDC in June. It is planning to submit a nature pledge, Monterrey Gomez said. "It is time to streamline processes to get to real action", he added. The UK also backed the pledge. The UK announced an ambitious emissions reduction target last week. The UAE — which hosted Cop 28 last year — released a new NDC just ahead of Cop 29, while Brazil, host of next year's Cop 30, released its new NDC on 13 November during the summit. Thailand yesterday at Cop 29 communicated a new emissions reduction target . Indonesia last week said that it intends to submit its updated NDC ahead of the February deadline, with a plan placing a ceiling on emissions and covering all greenhouse gases as well as including the oil and gas sector. Colombia also indicated that its new climate plan will seek to address fossil fuels, but it will submit its NDC by June next year . By Georgia Gratton Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: EU says finance draft text not acceptable


21/11/24
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21/11/24

Cop: EU says finance draft text not acceptable

Baku, 21 November (Argus) — The latest draft of the text on climate financing presented at the UN Cop 29 climate summit is not ambitious enough on mitigation — reducing emissions — and "clearly unacceptable," EU energy commissioner Wopke Hoekstra said today. Parties must agree at Cop 29, in Baku, Azerbaijan, on a new collective quantified goal (NCQG) — a new climate finance target — building on the $100bn/yr that developed countries agreed to deliver to developing countries over 2020-25. The text is the main outcome for the summit. "What we had on our agenda was not just to restate the [Cop 28] consensus but actually to enhance that and to operationalise that," but the text goes in the opposite direction, Hoekstra said. Parties to last year's Cop 28 summit in Dubai made an historic pledge to "transition away" from all fossil fuels. The EU has warned against any backsliding on this pledge . "We cannot accept the view that the previous Cop did not happen," Hoekstra said. A draft text on the mitigation work programme — a process that focuses on emissions reduction — was released by the Cop 29 presidency in the early hours of this morning. It does not mention phasing out or reducing fossil fuels in energy systems, or reference the agreement reached on the latter point at Cop 28 last year. Hoekstra indicated today's text does not provide enough clarity to allow the EU to put a concrete number on the amount of climate finance that should be available. The bloc has insisted the final number for climate financing can come only when other elements, including the structure and contributor base, are settled. But recipient country groups such as the G77 and Like-Minded Developing Countries (LMDC) groups have expressed impatience at the lack of a concrete number. Minor bright spots in the numerous draft texts released overnight include those on Article 6, which governs international carbon credits, Hoekstra said. But the commissioner is "sure there is not a single ambitious country who thinks this is nearly good enough." By Rhys Talbot Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Mexico to keep some energy regulator independence


20/11/24
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20/11/24

Mexico to keep some energy regulator independence

Mexico City, 20 November (Argus) — Mexico's lower house constitutional affairs commission changed its draft bill on eliminating independent regulators to keep the energy regulatory commission (CRE) independent on technical issues even after the energy ministry absorbs it. In an earlier draft, respective ministries would take over the functions of previously independent regulators. With the change, CRE will become a "decentralized body," said President Claudia Sheinbaum. It will retain technical independence but will no longer be an autonomous regulator able to set its budget, the president added. Sheinbaum did not mention hydrocarbons regulator CNH, which could take up a similar position as CRE. Antitrust watchdog Cofece and telecommunications regulator IFT would become similarly decentralized bodies with technical independence from the economy ministry. Transparency watchdog Inai will disappear but a new anticorruption ministry will take over its functions. Inai in recent years has forced state-owned oil company Pemex to release more detailed data about harmful emissions and fuel theft, among other issues. Mexico's independent regulators and watchdogs still formed part of the 2025 budget proposal the government revealed this week. The actual independence of Mexico's energy regulators has been questioned since the previous government, as the number of permits granted by CRE to private companies has dropped in favor of state-owned companies . Critics have raised concerns regarding the bill, arguing it will destabilize Mexico's balance of power and undermine investor confidence. The proposal also fueled concerns that this change could weaken Mexico's standing in the 2026 review of the US-Mexico-Canada free trade agreement (USMCA), as the US and Canada may see the exit of independent regulators as a risk to their business interests in Mexico. Sheinbaum said she met with US president Joe Biden and Canadian president Justin Trudeau during the G20 summit and discussed the importance of the USMCA. She did not mention any concerns the trade partners had regarding the bill. Morena previously tried to absorb the independent regulators early on during the previous administration. The ruling party saw its efforts strained because it lacked the two-thirds supermajority required to pass constitutional changes. Morena and its allies are now expected to secure the votes swiftly, as they have passed other constitutional reforms in the previous weeks. By Cas Biekmann Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Cop: Australia backs no new coal power call: Correction


20/11/24
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20/11/24

Cop: Australia backs no new coal power call: Correction

Corrects missing word in headline London, 20 November (Argus) — Major coal producers Australia and Colombia, along with the EU and 23 other countries including the UK, have pledged not to allow any new unabated coal-fired power generation in their energy systems at the UN Cop 29 climate summit in Baku, Azerbaijan. This comes a day after Colombia, New Zealand and the UK joined a Netherlands-led international coalition focused on phasing out incentives and subsidies for fossil fuels. Most of the coal pact signatories are members of the Powering Past Coal Alliance, under which some countries have committed to phasing out existing unabated coal power generation. Australia is not listed as a member of the alliance, but the cities of Sydney, Melbourne and Canberra are. Unsurprisingly, the list of signatories did not include China or India, the two world's largest coal importers. It also does not include the US, although the country is part of the Powering Past Coal Alliance. "There is no space for new unabated coal in a 1.5°C or even 2°C aligned pathway, yet coal capacity rose by 2pc last year," the pact signatories said today. The pledge focuses on coal-fired generation and does not mention the phasing out of exports or imports. Australia, is the world's second-largest seaborne coal exporter. The country is looking to host Cop 31 in 2026 by outbidding Turkey for the spot. But no realistic policy changes in coal exports is expected from Australia, which will have a federal parliamentary election by May 2025 and winning votes from key coal mining regions in New South Wales and Queensland has proven to be crucial in recent elections. Turkey is on track to overtake Germany as Europe's largest coal-fired generator this year and was not among the signatories of today's coal pledge. Amid calls for a faster phase-down of unabated coal-fired power generation, global coal trade is set to reach a record high of more than 1.5bn t this year , surpassing last year's 1.38bn t, according to IEA data. Coal consumption will probably remain resilient, supported by higher electricity demand growth in China and India. China has not set a new climate plan since 2021, but it is expected to ramp up its ambitions in a new plan due by February 2025. India and Indonesia are strongly encouraging higher coal production to ensure energy security. The US Energy Information Administration (EIA) in September lowered its forecast for US coal-fired generation in this year but raised its expectation for 2025 . By Shreyashi Sanyal Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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Indonesia advances coal-fired power phase-out to 2040


20/11/24
News
20/11/24

Indonesia advances coal-fired power phase-out to 2040

London, 20 November (Argus) — Indonesia plans to retire all coal-fired power plants within the next 15 years, advancing an earlier target of 2056, President Prabowo Subianto said today. This follows from Subianto's address at the G20 Summit in Rio de Janeiro, Brazil, on 19 November, where he emphasised the importance of global collaboration to achieve green energy transition. He also claimed Indonesia is optimistic it can reach net zero emissions before 2050, a decade ahead of its previous commitment. "We plan to build more than 75GW of renewable energy in the next 15 years [to replace coal-fired power]," Subianto added. His claims come at a time when Indonesia's deputy minister of energy and mineral resources (ESDM) Yuliot Tanjung admitted in a speech today that the country's reliance on coal for electricity is still high. Tanjung said the country has huge potential for solar and hydropower generation, owing to its geographical location, but they require technological developments and large investment. Indonesia has the world's fifth-largest operating coal-fired power capacity of 52.31GW, with about 9.81GW more under construction, according to Global Energy Monitor data. Only about 15pc of Indonesia's total installed generation capacity of more than 90GW is currently powered by renewables. New coal-fired projects have continued to be proposed this year, despite the Indonesian government's previous commitment in 2021 to stop building new coal-fired plants after 2023. In addition to power generation, coal is also heavily utilised in Indonesian industry, which contributed to domestic coal production reaching a record 720mn t so far this year. Indonesia could also be on track for a new output record this year, with ESDM expecting 2024 output to surpass 800mn t, up from 775mn t in 2023, if the current output trend continues for the rest of this year. Indonesia and the Philippines are the two most coal-reliant countries in southeast Asia, according to energy think-tank Ember. By Ashima Sharma Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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