Energy Companies Are Boosting Cybersecurity Investments to Combat the Growing Digital Threats Facing the Industry Today
In Brief
The energy industry is prioritizing cybersecurity, with two-thirds of respondents identifying it as the biggest risk, leading to increased investments in digital defenses.
An essential component of contemporary society, the energy industry spurs innovation and helps with the energy shift needed to combat climate change. But although digital technologies make this change possible, they also present new difficulties. Among these, cybersecurity is one of the most dangerous.
Given that two-thirds of respondents said their leadership considers cybersecurity to be the biggest risk facing their company today, a recent study shows that energy professionals are realizing the need of giving cybersecurity top priority. Investments in strengthening digital defenses have increased as a result of this increased awareness.
Cybersecurity: The Biggest Risk in the Sector
Energy businesses are upgrading their cybersecurity safeguards, according to the most recent DNV Cyber study. Sixty-five percent of professionals concur that their leadership currently views cybersecurity as the biggest concern.
The C-suite is not the only group that has become more aware of cybersecurity threats. A promising indication that cybersecurity is starting to take precedence at the highest levels is the astounding 78% of energy professionals who say they are confident that their leadership is adequately aware of cyber hazards.
These changes are part of a larger trend where energy corporations are fighting cyber threats head-on. According to the report’s data, 71% of energy professionals anticipate that their organizations will spend more on cybersecurity in the upcoming year.
Increasing Knowledge and Instruction
Financial investment alone is not enough to advance cybersecurity initiatives in the energy sector. Another important element influencing the industry’s enhanced cybersecurity posture is employee awareness and readiness. Over 80% of energy professionals are confident in their capacity to react correctly in the case of a cyber threat, according to the research.
There are still large inadequacies in the industry’s cybersecurity preparation, notwithstanding these encouraging advancements. Seventy-six percent of energy professionals worry that the cybersecurity training programs offered by their companies are inadequate to handle increasingly complex threats.
The Energy Transition’s Effect on Cyber Risk
The energy industry is undergoing major modifications as a result of the worldwide movement toward renewable energy and digitization. While digital technology adoption is necessary to facilitate the energy transition, it also introduces new cybersecurity threats. Businesses are more vulnerable to possible cyberattacks as they depend more on data, third-party technologies, and networked systems.
The transition to digital solutions and greener energy adds further complexity to the cybersecurity problem. Achieving the energy shift requires both technical innovation and protecting the integrity of digital systems, as noted by Ditlev Engel, CEO of Energy Systems at DNV. In order to guarantee energy security in a geopolitical climate that is becoming more hostile, the quick scaling of digital technologies utilized in the transition needs an equally flexible and strong cybersecurity strategy.
Tensions in Geopolitics Boost The Concerns About Cybersecurity
The oil sector is now much more concerned as a result of recent geopolitical events. According to the survey’s findings, 75% of energy experts said that growing geopolitical tensions have caused their companies to increase their cybersecurity efforts.
This is in line with increased worries about cyberattacks that target vital infrastructure and are funded by foreign states. With 72% of respondents expressing anxiety over the possibility of foreign forces attacking their organizations—up from 62% in 2023—it is clear that state-backed cyber attacks are on the rise.
Energy firms are increasingly in danger from cybercriminal gangs in addition to external state concerns. Professionals’ concerns about cybercrime have increased dramatically, rising from 50% in 2023 to 79% this year. These criminal organizations are becoming more and more clever, breaking into enterprises with innovative strategies like AI-powered phishing campaigns.
Additionally, 62% of respondents expressed concern about the threat posed by malicious insiders, up from 51% the previous year. These results demonstrate the increasing complexity of the cybersecurity environment, where more sophisticated and varied hazards are joining more conventional threats.
Securing Operational Technology (OT)
For energy organizations, protecting their operational technology (OT) systems is one of the most important areas of concern. The physical resources that drive the energy infrastructure are managed, observed, and controlled by these computerized systems. The vulnerabilities of OT systems have grown to be a significant worry as the sector grows increasingly interconnected.
Organizations are realizing how important it is to safeguard these vital systems, as evidenced by the fact that 67% of energy experts anticipate more investment in OT security in the upcoming year.
The fact that many corporations are still far behind in terms of their OT defenses makes securing OT much more difficult. 57% of energy professionals acknowledge that their IT cybersecurity solutions are more sophisticated than their OT security measures.
Supply Chain Weaknesses
Supply chain security is another major issue in the energy industry. Due to the increasing complexity of cyberattacks, several threat actors are focusing on energy corporations as well as their suppliers and sub-suppliers.
According to the survey, 53% of energy professionals think that cybersecurity is typically covered by their procurement specifications. Only sixteen percent, nevertheless, are quite certain that they can see such weaknesses and have complete insight into their supply networks. With 34% of respondents believing that their suppliers may have had undiscovered cybersecurity breaches, this lack of openness increases the possibility of concealed breaches inside supply chains.
Artificial Intelligence’s Role in Cybersecurity
In the battle against cyber threats, artificial intelligence presents both opportunities and challenges for the energy industry. AI has the potential to improve cybersecurity defenses by speeding up threat detection and response times. However, scammers are also using AI to conduct increasingly complex and convincing assaults, such as phishing emails that are created by AI, and it is more difficult for people to differentiate from authentic ones.
Sixty-seven percent of energy experts admit that phishing assaults using AI have made it harder to spot fraudulent emails. The energy industry must use AI to strengthen its defenses as fraudsters use it to improve their tactics. This is easier said than done, though. With 47% of cybersecurity experts worried about being surpassed by more skilled attackers, many believe that if they don’t include AI in their defensive methods, they will lag behind their opponents.
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
