Americans are likely to see gas prices above $3 per gallon soon. The last time prices reached that point was the summer of 2014.
Pipeline Hack Pushes into Third Day
The largest oil pipeline in the U.S. has been shut down for three days due to a ransomware attack on the company that operates it. The Colonial Pipeline originates in Houston, Texas, and terminates at the Port of New York and New Jersey. It carries 45% of the East Coast’s gasoline, diesel, and jet fuel supply.
Its operator, Colonial Pipeline Company, said that on May 7, the company “learned it was the victim of a cybersecurity attack and has since determined that the incident involved ransomware. Quickly after learning of the attack, Colonial proactively took certain systems offline to contain the threat. These actions temporarily halted all pipeline operations.”
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The company has no estimate for when it will restart pumping. In a statement, it says, “We are in the process of restoring service to other laterals and will bring our full system back online only when we believe it is safe to do so, and in full compliance with the approval of all federal regulations.”
According to AAA, the average price of a gallon of gas in the U.S. was $2.96 this morning. Petroleum futures were up sharply in early trading.
Tanker Truck Driver Shortage
Tanker trucks can move some of the fuel normally moved by the pipeline. But the U.S. is already facing a shortage of qualified tanker truck drivers that was expected to push gas prices up over the summer.
The U.S. Department of Transportation’s Federal Motor Carrier Administration on Sunday issued emergency orders allowing tanker truck drivers in 18 states to drive longer hours than under normal conditions.
In a statement, the agency said, “USDOT’s top priority is safety, and while current circumstances dictate providing industry flexibility, FMCSA will work closely with its state and industry partners to monitor driver work hours and conditions for the duration of the exemption.”
