Energy companies are taking cyber threats seriously at the highest levels, as two in three energy professionals (65 per cent) say their leadership views cybersecurity as the greatest current risk to their business, according to new research on the state of cybersecurity in the energy sector.

 

More than two thirds of energy professionals (71 per cent) expect their company to increase investment in cybersecurity this year.

 

According to the latest Energy Cyber Priority report from DNV Cyber, energy companies are making progress in cybersecurity.

 

This includes greater awareness at leadership level, with 78 per cent of energy professionals confident their leaders sufficiently understand cyber risk.

 

Successes have been delivered by employee training, as more than eight in 10 (84 per cent) say they know exactly what to do if they are concerned about a potential cyber threat.

 

Growing attention is being paid to operational technology (OT) cybersecurity – securing the systems that manage, monitor, and automate physical assets – as two thirds (67 per cent) expect greater OT security investment in the year ahead.

 

Challenges remain, however, as the energy transition creates new attack surfaces and as threat actors become more sophisticated.

 

Digital technologies are essential to drive and enable the energy transition, but each potentially broadens an energy company’s exposure to cyber risk – whether due to their increased use of sensitive data, greater dependence on third-party tools and components, or the introduction of connected environments through which hackers can infiltrate from system to system.

 

“Achieving the energy transition is central to society at large. The whole energy sector – companies and governments alike – are working together on this massive challenge, which is increasingly complex because the technologies underpinning the transition are largely digital and scaling rapidly. With this comes cybersecurity risks,” says Ditlev Engel, CEO, Energy Systems at DNV. “Cybersecurity should be a priority for all players in the energy sector to achieve the climate goals and guarantee energy security, as geopolitics make the world more hostile and uncertain.”

 

The energy transition is making cyber risk unavoidable, and this is reshaping attitudes in the energy industry, as half (49 per cent) of energy professionals believe their organisations should accept additional cyber risk as a necessary trade-off for innovation.

 

Of the 375 energy professionals surveyed globally for the research, three-quarters (75 per cent) report that their organisation has increased focus on cybersecurity because of growing geopolitical tensions over the last year.

 

Some 72 per cent are concerned about the potential for attacks directed by foreign powers, up from 62 per cent in 2023.

 

Eight in 10 (79 per cent) are concerned about the threat from cyber-criminal gangs, up from 50 per cent in 2023. The research records a rise in concern about malicious insiders, up from 51 per cent in 2023 to 62 per cent this year.

 

“Even as the energy industry becomes more mature in its cybersecurity posture, it must continue to strengthen and adapt to remain resilient against a growing number of increasingly sophisticated threats. From attacks on supply chains, recruitment of malicious insiders, and the use of AI, adversaries are upping their game and the energy industry needs to keep up,” says Auke Huistra, Director of Industrial and OT Cybersecurity at DNV Cyber.

 

Connecting physical infrastructure to modern IT architectures and other assets creates new vulnerabilities. Recognising the potential to cause harm, threat actors are increasing their attacks on OT systems, with the potential to directly cause physical safety incidents. More than two thirds of energy professionals (71 per cent) acknowledge that their organisations are more vulnerable to OT cyber events than ever before, an increase from 64 per cent in 2023. More than half (57 per cent) admit that their OT defences lag their IT defences.

 

Supply chains are a major worry for energy companies as threat actors go to suppliers and sub-suppliers to gain access to companies operating large assets. Around half (53 per cent) of energy professionals indicate that cybersecurity issues are typically included in their procurement requirements and processes. Just 16 per cent are very confident that their organisation can demonstrate full visibility of the supply chain and any vulnerabilities, and more than a third (34 per cent) suspect undisclosed breaches among their suppliers.

 

Employee vigilance continues to rise, but adversaries are constantly changing their approach and targeting employees with more sophisticated tactics. Three quarters of energy professionals (76 per cent) worry that their organisation’s cybersecurity training is not advanced enough to prepare for more sophisticated attacks. Skills and knowledge gaps are also an issue, as half (46 per cent) of energy professionals say a lack of skills and talent is making it more challenging for their organisations to secure their organisations.

 

Generative AI’s increasingly human-sounding tone and capacity for detail enables cyber criminals to launch more convincing scams. Two-thirds of energy professionals (66 per cent) agree that attackers’ use of AI in phishing attacks has made it more difficult to determine whether emails are genuine. Cybersecurity professionals understand that neglecting AI will put them at a disadvantage, as almost half (47 per cent) fear they will fall behind adversaries unless they harness AI.

 

“To further strengthen their cybersecurity, energy companies should – as a priority – broaden their efforts to secure OT and support greater security and transparency in the supply chain,” says Huistra. “They should reset and redesign cyber’s relationship with the business, take a more innovative approach to training, and build understanding of AI.” -TradeArabia News Service