Why is Cybersecurity Important for Oil and Gas?

30 Jul 2023
Playing a vital role in the global economy, the oil and gas industry is a prime cyber threat
target. Operations involve critical infrastructure such as refineries, pipelines, and drilling rigs.
With increasing digitization and system interconnectedness, ensuring robust cybersecurity
measures is essential.

Herein we 1) look at the importance of cybersecurity in the oil and gas industry, 2) identify
key challenges, 3) examine the susceptibility of IT and OT systems to risk, 4) propose
methods to reduce alert fatigue, and 5) outline strategies to enhance oil and gas cybersecurity.

Given its partial reliance on legacy systems, the oil and gas industry faces some
unique cybersecurity challenges as it increasingly integrates its IT and OT infrastructure
with remote operations.

To establish robust cyber resilience throughout the oil and gas industry, it’s essential to
undertake a comprehensive, multidisciplinary approach that is also synchronized. This
promotes a harmonious integration of business operations and technological advancements,
especially in the face of rapidly increasing digitalization and the heightened risk of cyber
attacks.

Why the oil and gas industry is vulnerable

to cyberattacks
The oil and gas industry relies on complex technological systems to facilitate worldwide
operations, making it highly vulnerable to cyber threats. The consequences of successful
attacks can be severe, leading to physical damage, production disruptions, environmental
disasters, and significant financial losses. Cyber breaches can compromise safety systems,
leading to accidents, injuries, and potential environmental disasters.

The importance of oil and gas cybersecurity can be summarized as follows:

1. Protecting critical infrastructure

2. Safeguarding intellectual property
3. Safety and environmental protection

Cybersecurity safeguards ensure the uninterrupted flow of oil and gas operations while
preventing unauthorized access, data breaches, and malicious activities that might halt
production or compromise the integrity of your infrastructure.

Oil and gas companies deal with vast amounts of sensitive information, including intellectual
property, exploration data, financial records, and customer information. Protecting it all is
vital to prevent financial loss, reputational damage, and regulatory non-compliance. Ensuring
the integrity, confidentiality, and availability of critical data and systems is, therefore, of
utmost importance.
Key oil and gas cybersecurity challenges
Sophisticated cyber threats - These can originate with state-sponsored actors, hacktivists,
and criminal syndicates. The industry faces sophisticated advanced persistent threats (APTs)
that seek to gain unauthorized access to valuable intellectual property, such as drilling
technologies, reservoir data, or strategic plans.

Industrial control system (ICS) vulnerabilities - Operational technology (OT) systems,

including distributed control systems (DCS) and supervisory control and data acquisition
(SCADA), are susceptible to cyber threats. This is especially true of the latter, given its long
lifespan and lack of security measures. Such outdated systems often lack regular security
updates (if any) and proper segmentation; limited security controls make them vulnerable to
exploitation. And too many aren’t easily patched or updated, leaving them susceptible to
known vulnerabilities.

Insider threats - Unauthorized physical access to critical infrastructure can result in

tampering or destruction of systems. Other so-called insider threats pose a significant
challenge, as disgruntled employees, contractors, or others who have been granted prior
authorized access can intentionally or unintentionally compromise critical systems and data.

Remote operations - The industry's increasing reliance on remote operations and IoT
devices introduces new security challenges. The use of remote access technologies and the
interconnection of devices increase your attack surface, thus requiring stringent security
measures to mitigate risks.

Supply chain risks - The interconnected nature of the oil and gas industry introduces
weaknesses through third-party vendors and suppliers. Those armed with privileged access
can exploit vulnerabilities, compromise systems, or inadvertently expose critical information.
Moreover, a compromised supply chain can result in the introduction of malicious software
or hardware components, leading to potential security breaches.

Watch this two-minute video to learn how OTORIO remOT secures every link of your supply
chain’s connectivity to industrial assets in to eliminate risks caused by unauthorized or
malicious access.

Why IT and OT systems are susceptible to

risk
IT and OT system integration in the oil and gas industry improves efficiency but also creates
new cyberattack vectors. Insecure networks are often susceptible to other threats that include
malware and ransomware. Such malicious software can disrupt operations, steal data, and/or
demand ransom payments to restore system functionality. Cybercriminals regularly target
workers with deceptive emails (i.e., phishing), compromising their credentials or tricking
them into installing malware. Your network could also be overwhelmed by a large-scale
distributed denial of service (DDoS) attack, leading to service disruptions.
IT systems – Oil and gas companies use IT systems for several functions, such as data
management, financial transactions, supply chain management, and communication. They
store sensitive corporate and customer data, making them attractive targets for
cybercriminals. It is imperative to protect intellectual property (IP) and sensitive information
from theft or unauthorized access that starts with a data breach.

OT systems – OT systems control physical processes involved in production, including

equipment monitoring, process automation, and safety systems. They control and monitor
physical processes while being increasingly interconnected with IT systems. This
convergence creates potential vulnerabilities, as successful OT system cyberattacks have
realized severe consequences that include disruptions in production, safety incidents, and
environmental damage.

Propagation – Attacks on IT systems can infiltrate OT systems, thereby impacting physical

processes and safety. Any well-equipped, knowledgeable bad actor can exploit vulnerabilities
in IT and OT systems to gain unauthorized access, disrupt operations, or steal sensitive data.
Such threats require continuous monitoring and adaptive security measures to effectively
detect and mitigate them.

Reducing alert fatigue

Security alert fatigue is a common challenge for organizations juggling a large volume of
warnings. In the oil and gas industry, reducing alert fatigue is an important factor in ensuring
legitimate threats are promptly identified and addressed.

Within oil and gas cybersecurity standards, here are some methods to mitigate alert fatigue:

Implement automation and machine learning to filter alerts based on their severity and
relevance. Your team is then able to analyze them in real-time, reduce false positives, and
prioritize critical alerts for immediate attention.

Enhance security analytics capabilities to detect and effectively respond to

anomalies. Regularly review and fine-tune security alert thresholds to reduce false positives.

Automate routine security tasks and orchestrate responses to reduce the burden on security
teams, enabling them to focus on critical incidents and respond more efficiently.
Implementing a security information and event management (SIEM) system to consolidate
and correlate security events across your organization helps to significantly streamline alert
management.

Reduce alert fatigue by educating all workers, including upper management, about best
practices for oil and gas security, thereby raising awareness about the potential consequences
of being inattentive to the wide variety of cyber threats your organization regularly faces.
How to build cyber resilience in the oil and
gas sector
Risk-based approach - Adopting a risk-based approach helps prioritize security efforts by
identifying critical assets, conducting risk assessments, identifying vulnerabilities,
prioritizing security measures, and allocating resources accordingly. This methodology
ensures that investments and efforts are directed toward the most vulnerable areas.

Strong perimeter defense - Implementing robust firewalls, intrusion detection and

prevention systems (IDS), and secure network architectures can help protect critical systems
from unauthorized access.

Secure remote access - As the industry increasingly adopts remote operations and
monitoring, implementing secure remote access solutions with strong authentication and
encryption mechanisms becomes increasingly important.

Patch management - Developing a comprehensive patch management process to address

vulnerabilities in both IT and OT systems is essential. This includes timely patching of
operating systems, software, and firmware.

Multifactor authentication (MFA) - Implementing MFA for user access to critical systems
adds an extra layer of security, reducing the risk of unauthorized access and lateral network
movement in the event of compromised user credentials.

Regular assessments and audits - Conducting periodic cybersecurity risk assessments and
audits helps re-examine possible vulnerabilities, ensure compliance with oil and gas
cybersecurity standards, and implement required controls and improvements.

Incident response and recovery planning - Developing a robust incident response plan that
outlines roles, procedures, and communication channels is vital for minimizing the impact of
cyber incidents. Regular testing and exercises should be conducted to evaluate plan
effectiveness.

Continuous monitoring and threat hunting - Implementing real-time monitoring, log

analysis, and threat-hunting techniques can help identify and promptly respond to potential
threats.

Encryption and data protection - Employing strong encryption algorithms to protect

sensitive data at rest and in transit can mitigate the risk of data breaches and unauthorized
access.

Vendor and supply chain management - Implementing stringent security requirements and
conducting thorough security assessments for third-party vendors and suppliers can help
reduce the risk of supply chain attacks.
Worker education and awareness - Raising oil and gas cybersecurity awareness among
your staff helps foster a culture of safety, ensuring everyone understands their roles and
responsibilities. With regular training programs and simulations, everyone—including the
brass–should be periodically tested to eliminate complacency and inertia.

The future of oil and gas cybersecurity

The oil and gas industry faces significant cybersecurity challenges due to its reliance on
increasingly interconnected IT and OT systems. Addressing these challenges and enhancing
oil and gas cybersecurity is crucial to safeguard critical infrastructure, protect intellectual
property, ensure safety, and maintain your industry's operational continuity.

By implementing comprehensive risk management strategies, reducing alert fatigue, and

adopting industry best practices, meeting and strengthening oil and gas cybersecurity
standards can help tremendously in mitigating ever-evolving threats.

Protect your critical infrastructure, ensure business continuity, prevent cyber threats, and
manage supply chain risk.

Discussion Point

1. How can you monitor and regulate activity in your networks—both in and out of the
field—to secure business continuity and critical infrastructure while preventing third-
party risk?
2. What costs are involved in implementing Cyber security?
3. What is the importance of cybersecurity in the oil and gas industry?
4. Identify the key challenges in Cyber security that your company faces today?
5. Examine and discuss the susceptibility of IT and OT systems to risk?
6. Propose methods to reduce alert fatigue.
7. Outline strategies to enhance oil and gas cybersecurity.