Dr. Mustafa S. Aljumaily
Cybersecurity Threat Landscape in the Energy Sector (2024–2025)
The energy sector is facing an unprecedented surge in cyber threats, driven by rapid digital transformation, geopolitical tensions, and the increasing sophistication of threat actors. Below is an overview of the current cybersecurity landscape affecting energy infrastructure globally.
Key Threat Trends
- Ransomware Attacks: In 2024, 67% of energy, oil/gas, and utilities organizations experienced ransomware attacks. Notably, 98% of these attacks involved attempts to compromise backups, with a 79% success rate—the highest across all sectors. The average recovery cost from such attacks stood at $3.12 million. (The State of Ransomware in Critical Infrastructure 2024 – Sophos News)
- Surge in Cyber Attacks: U.S. utilities reported a 70% increase in cyber attacks in 2024 compared to the previous year, averaging 1,162 attacks through August. This escalation is attributed to outdated software and the rapid expansion of the grid, which introduces more potential points of vulnerability. (Cyber Attacks on U.S. Utilities Surged 70% This Year, Says Research Firm)
- Vulnerabilities in Solar Infrastructure: Research identified 46 new vulnerabilities in solar inverters from major manufacturers, exposing systems to risks like energy manipulation and data theft. These vulnerabilities stem from outdated firmware and weak authentication protocols. (Millions of solar power systems could be at risk of cyber attacks after researchers find flurry of vulnerabilities)
Prominent Threat Actors
- Volt Typhoon: This Chinese state-sponsored group targets U.S. critical infrastructure, including energy grids, using stealthy techniques to evade detection. Their activities are believed to be preparatory steps for potential future conflicts. (Volt Typhoon)
- CyberAv3ngers: Affiliated with Iran’s Revolutionary Guard Corps, this group has targeted industrial control systems globally, focusing on sectors like water, wastewater, and oil and gas. Their operations have disrupted services and compromised sensitive systems. (CyberAv3ngers: The Iranian Saboteurs Hacking Water and Gas Systems Worldwide)
Global Incidents Highlighting Vulnerabilities
- European Blackout: In April 2025, a massive blackout affected Spain, Portugal, and southern France. Investigations are exploring possible sabotage or cyber-terrorism, with suspicions of Russian involvement due to a pattern of disruptive actions across Europe. (Now Spain opens SABOTAGE probe amid chaotic scramble for cause of mass blackout…as ‘unusual activity’ spotted in UK grid)
- Halliburton Data Breach: U.S. oilfield services firm Halliburton disclosed unauthorized access and data exfiltration from its systems, underscoring the sector’s vulnerability to cyber intrusions. (Cyberattacks on US Utilities Surged 70% This Year, Says Research Firm)
Industry Response and Preparedness
- Leadership Awareness: A significant shift is observed in the energy industry’s approach to cybersecurity, with 65% of energy professionals acknowledging it as the greatest current risk to their business. (Energy Cyber Priority 2025: Addressing evolving risks, enabling transformation)
- Regulatory Measures: The U.S. Department of Energy issued new cybersecurity guidelines in 2024 for electric distribution systems and distributed energy resources, aiming to bolster defenses against evolving threats. (United States: Cyber attacks on energy infrastructure on the rise – energynews)
Cost Analytics: Data Breach Impact in the Energy Sector (2024–2025)
The energy sector continues to grapple with escalating costs associated with data breaches, surpassing global averages and highlighting the critical need for robust cybersecurity measures.
Average Breach Costs
- Energy Sector: The average cost of a data breach in the energy sector reached $6.3 million in 2023, significantly higher than the global average of $4.45 million. This underscores the sector’s heightened vulnerability due to its interconnected infrastructure and critical services. (Lights Out: Average Cost of a Breach in the Energy Sector is $6.3 Million – Faction Networks)
- Global Average: In 2024, the global average cost of a data breach rose to $4.88 million, marking a 10% increase from the previous year and the largest spike since the pandemic. (Surging data breach disruption drives costs to record highs | IBM)
Key Cost Drivers
- Operational Disruption: Approximately 70% of breached organizations reported significant disruption to their operations, contributing to increased costs. (IBM Report: Escalating Data Breach Disruption Pushes Costs to New Highs)
- Lost Business and Post-Breach Expenses: Expenses related to lost business, customer support, and regulatory fines have driven up the overall cost of breaches. (Surging data breach disruption drives costs to record highs | IBM)
- Security Staffing Shortages: Organizations facing high-level security staffing shortages experienced breach costs that were $1.76 million higher on average than those with adequate staffing. (Surging data breach disruption drives costs to record highs | IBM)
Mitigation Through AI and Automation
- Cost Reduction: Organizations that extensively deployed AI and automation in their security operations saw an average reduction of $2.2 million in breach costs compared to those without such technologies. (Surging data breach disruption drives costs to record highs | IBM)
- Faster Response Times: The use of AI and automation reduced the time to identify and contain breaches by nearly 100 days on average, enhancing the organization’s ability to mitigate damage. (Surging data breach disruption drives costs to record highs | IBM)
Emerging Threats
- Shadow Data: Approximately 35% of breaches involved shadow data—unmanaged or unknown data—leading to higher breach costs and complicating data protection efforts. (Cost of a Data Breach Report 2024 | An IBM Report)
- Multi-Environment Data Storage: Breaches involving data stored across multiple environments (public cloud, private cloud, on-premises) accounted for 40% of incidents and took longer to resolve, indicating the need for comprehensive data management strategies. (Insights from the 2024 IBM Security Report)
Case Studies: Notable Data Breaches in the Energy Sector (2024–2025)
The energy sector has been increasingly targeted by cyberattacks, leading to significant operational disruptions and highlighting vulnerabilities in critical infrastructure. Below are detailed case studies of recent significant breaches:
Halliburton (USA) – August 2024
- Incident: Halliburton, a leading U.S. oilfield services company, experienced a cyberattack where unauthorized parties accessed and exfiltrated data from its systems. (Top US oilfield firm Halliburton hit by cyberattack, source says)
- Impact: The breach caused disruptions, limiting access to portions of Halliburton’s business applications. The company initiated its cybersecurity response plan and is conducting an internal investigation with external advisors. (Halliburton says hackers removed data in August cyberattack)
- Response: Halliburton took certain systems offline to protect them and notified law enforcement. The company is working to restore affected systems and assess the impact of the breach. (Halliburton Hit by Cyberattack)
Atlas Oil (USA) – May 2024
- Incident: Atlas Oil suffered a ransomware attack initiated through a phishing vulnerability, leading to the exfiltration of sensitive company and personal employee information. (2024 Atlas Data Breach – Atlas Oil)
- Impact: The breach potentially exposed personal information of team members. (2024 Atlas Data Breach – Atlas Oil)
- Response: Atlas Oil engaged with the FBI Cyber Criminal Squad and Michigan State Police, mandated VPN and multi-factor authentication for all users, and launched an investigation with cybersecurity experts. (2024 Atlas Data Breach – Atlas Oil)
ENGlobal (USA) – November 2024
- Incident: ENGlobal, a Texas-based engineering and automation contractor for the energy sector, experienced a ransomware attack that encrypted some of its data files. (US government, energy sector contractor hit by ransomware – Help Net Security)
- Impact: Access to ENGlobal’s IT systems was limited to essential business operations, affecting the company’s ability to operate normally. (Major energy contractor reports ‘limited’ access to IT after ransomware locks files – DataBreaches.Net)
- Response: ENGlobal initiated an internal investigation, engaged external cybersecurity specialists, and restricted access to its IT systems to contain and remediate the incident. (US government, energy sector contractor hit by ransomware – Help Net Security)
RECOPE (Costa Rica) – December 2024
- Incident: The state-owned energy company, RECOPE, was hit by a ransomware attack, necessitating a shift to manual operations. (December 2024: Major Cyber Attacks, Data Breaches, Ransomware Attacks)
- Impact: The attack disrupted RECOPE’s operations, requiring assistance from U.S. cybersecurity experts to gradually restore systems. (December 2024: Major Cyber Attacks, Data Breaches, Ransomware Attacks)
- Response: RECOPE continued manual operations until processes were deemed safe and systems could be fully restored. (December 2024: Major Cyber Attacks, Data Breaches, Ransomware Attacks)
MOVEit Supply Chain Breach – 2023–2024
- Incident: A critical vulnerability in the MOVEit file transfer software was exploited by the CL0P ransomware group, affecting over 2,700 organizations, including energy sector entities. (2023 MOVEit data breach)
- Impact: The breach compromised the personal data of approximately 93.3 million individuals, highlighting systemic risks in digital supply chains. (2023 MOVEit data breach)
- Response: Affected organizations, including CPS Energy, confirmed their systems were unaffected, but the incident emphasized the need for robust third-party risk management. (CPS Energy responds to concerns over 2023 data breach)
Risk Factors: Key Vulnerabilities in the Energy Sector
The energy sector faces a complex array of cybersecurity challenges, stemming from technological, organizational, and geopolitical factors. These vulnerabilities not only increase the risk of data breaches but also threaten the stability of critical infrastructure.
Legacy Systems and Outdated Technology
Many energy companies continue to rely on legacy operational technology (OT) systems that lack modern security features. These outdated systems are often incompatible with current cybersecurity measures, making them susceptible to attacks. (Cybersecurity Challenges in the Energy Sector: Strategies for Protecting Critical Infrastructure – Energies Media)
Third-Party Dependencies and Supply Chain Risks
A significant portion of data breaches in the energy sector originates from third-party vendors. These vendors often have access to critical systems but may not adhere to stringent security protocols, introducing vulnerabilities. (Third-party vendors drive 45% of breaches in US energy sector | SC Media, Impact of Third-Party Vendors on Breaches in the Energy Sector – DDoS Internet Security)
Increased Interconnectivity and IoT Integration
The integration of Internet of Things (IoT) devices and increased interconnectivity in energy systems have expanded the attack surface. Many IoT devices lack robust security features, making them potential entry points for cyber attackers. (Cyber Threats Energy Sector: What You Need to Know in 2025)
Human Error and Insider Threats
Employees can inadvertently compromise security through actions such as falling for phishing scams or mishandling sensitive data. Additionally, insider threats, whether malicious or accidental, pose a significant risk to energy companies. (Cybersecurity Challenges in the Energy Sector: Strategies for Protecting Critical Infrastructure – Energies Media)
Geopolitical Tensions and State-Sponsored Attacks
The energy sector is a prime target for state-sponsored cyberattacks, especially amid geopolitical tensions. Nation-state actors may seek to disrupt energy supplies or steal sensitive information for strategic advantages.
AI and Advanced Persistent Threats (APTs)
The rise of artificial intelligence (AI) has enabled more sophisticated cyberattacks. Advanced Persistent Threats (APTs) can leverage AI to conduct prolonged and stealthy operations against energy infrastructure. (ESG Watch: Companies ‘complacent about cybercrime’, despite rise in risk from AI)
Mitigation Strategies: Strengthening Cybersecurity in the Energy Sector
To address the multifaceted cybersecurity challenges in the energy sector, a comprehensive approach encompassing technological upgrades, third-party risk management, employee training, and robust policy development is essential.
Technological Upgrades
- Adopt Established Cybersecurity Frameworks: Implement frameworks like the NIST Cybersecurity Framework (CSF), which provides a structured approach through its core functions: Identify, Protect, Detect, Respond, and Recover. This aids in assessing and managing cybersecurity risks effectively. (Information security standards)
- Implement Multi-Factor Authentication (MFA): Enhance security by requiring multiple forms of verification before granting access to sensitive systems, significantly reducing the risk of unauthorized access. (Energy Sector Cybersecurity Tips)
- Deploy Intrusion Detection and Prevention Systems (IDPS): Monitor network traffic for suspicious activities and respond to potential threats in real-time, thereby preventing breaches.
- Regularly Update and Patch Systems: Ensure all software and systems are up-to-date with the latest security patches to protect against known vulnerabilities.
Third-Party Risk Management
- Conduct Thorough Vendor Assessments: Evaluate third-party vendors’ security postures through detailed risk assessments, including background checks and compliance audits, to ensure they meet cybersecurity standards. (Third-Party Risk Management Best Practices for the Energy Industry)
- Implement Continuous Monitoring: Regularly monitor vendors’ cybersecurity practices and performance to detect and address potential risks promptly. (Best Practices for Managing Third-party Risk in the Energy Sector)
- Establish Clear Security Requirements in Contracts: Define specific cybersecurity expectations and responsibilities in vendor agreements to ensure accountability.
- Review and Update Third-Party Policies Regularly: Continuously assess and revise third-party risk management policies to adapt to evolving threats and regulatory requirements. (Third-Party Risk Management Best Practices for the Energy Industry)
Employee Training and Awareness
- Implement Regular Security Awareness Training: Educate employees on recognizing and responding to cybersecurity threats, such as phishing and social engineering attacks, to reduce human error. (How to Address IT Risks in the Energy Sector – HogoNext)
- Conduct Phishing Simulations: Test employees’ ability to identify phishing attempts, providing practical experience and reinforcing training. (How to Address IT Risks in the Energy Sector – HogoNext)
- Promote a Security-First Culture: Encourage employees to prioritize cybersecurity in their daily activities and report suspicious incidents promptly.
Policy Development and Governance
- Develop Comprehensive Cybersecurity Policies: Establish clear policies covering data protection, access controls, incident response, and employee responsibilities to create a strong security framework. (Defending the Energy Sector Against Cyber Threats | SecOps® Solution)
- Establish Incident Response Plans: Create detailed plans outlining steps to take during a cybersecurity incident, including communication strategies and recovery procedures, to minimize impact.
- Align with Regulatory Standards: Ensure policies comply with relevant regulations and standards, such as NERC CIP and ISO/IEC 27001, to meet industry requirements. (Energy Sector Cybersecurity Framework Implementation Guidance – UMA Technology)
- Engage in Continuous Improvement: Regularly review and update policies and procedures to address new threats and incorporate lessons learned from past incidents.
Financial Impact of Data Breaches in the Energy Sector (2024–2025)
Data breaches in the energy sector have escalated significantly, both in frequency and financial impact. The average cost of a data breach in this sector reached $6.3 million in 2023, marking a 40% increase over the global average of $4.45 million. In the Middle East, the energy sector experienced the most expensive data breaches across all industries, reaching $9.83 million per breach on average in 2024. (Lights Out: Average Cost of a Breach in the Energy Sector is $6.3 Million – Faction Networks, Data breach cost for Middle East businesses rises 10 percent to $8.74 million in 2024: Report)
Breakdown of Costs
- Direct Costs
- Detection and Escalation: Expenses related to identifying and reporting the breach.
- Notification: Costs associated with informing stakeholders and regulatory bodies.
- Post-Breach Response: Customer support, legal fees, and remediation efforts.
- Indirect Costs
- Lost Business: Operational downtime, customer attrition, and reputational damage.
- Regulatory Fines: Penalties for non-compliance with data protection regulations.
Case Study: Colonial Pipeline Attack (2021)
The Colonial Pipeline ransomware attack in 2021 serves as a stark reminder of the vulnerabilities in the energy sector. The company paid a ransom of $4.4 million to regain control of its systems. The attack led to widespread fuel shortages and highlighted the critical need for robust cybersecurity measures. (Colonial Pipeline ransomware attack)
Trends and Observations
- Rising Costs: The global average cost of a data breach increased to $4.88 million in 2024, the highest since the pandemic. (Average cost of a data breach in the Middle East rises to $8.75 million, IBM study shows | The National)
- Extended Breach Lifecycles: The average time to identify and contain a breach remains significant, allowing attackers prolonged access to systems. (Cost of a data breach 2024: Financial industry | IBM)
- Human Error: A substantial portion of breaches result from human error, emphasizing the need for employee training and awareness.
Executive Summary: Cost of Data Breaches in the Energy Sector – Insights & Mitigation Strategies (2025)
The energy sector stands at the forefront of critical infrastructure and is increasingly targeted by cybercriminals due to its geopolitical importance and widespread digital transformation. Data breaches in this sector are not only more frequent but also significantly more costly than in other industries.
Key Findings
- High Breach Costs: The average cost of a data breach in the energy sector was $6.3 million globally in 2023, with regions like the Middle East reporting figures as high as $9.83 million.
- Prevalent Attack Types: Ransomware and supply chain attacks dominate, often facilitated by outdated OT systems and third-party vulnerabilities.
- Extended Disruption: Breaches typically lead to operational downtime, with nearly 70% of affected firms reporting business disruptions post-breach.
- Top Threat Actors: State-sponsored groups like Volt Typhoon and CyberAv3ngers increasingly target energy networks to destabilize national infrastructure.
- Human Error & IoT Weaknesses: A majority of breaches still stem from phishing, poor password hygiene, and unsecured IoT devices.
Strategic Recommendations
- Modernize Legacy Systems:
- Upgrade or isolate outdated OT environments.
- Apply timely patches and firmware updates.
- Adopt AI and Automation:
- Use AI-driven detection systems to reduce breach lifecycle and costs.
- Implement automated incident response and backup recovery solutions.
- Strengthen Third-Party Risk Governance:
- Vet vendors using cybersecurity assessments.
- Mandate security standards via contractual agreements and continuous monitoring.
- Enhance Workforce Training:
- Conduct regular phishing simulations and security awareness programs.
- Encourage a proactive, security-first corporate culture.
- Comply with Global Frameworks:
- Implement NIST CSF, ISO/IEC 27001, and sector-specific guidelines like NERC CIP.
- Develop comprehensive incident response and business continuity plans.
Conclusion
The financial, operational, and reputational risks associated with data breaches in the energy sector are profound. By investing in proactive defense strategies, modern technology, and cross-sector collaboration, energy companies can build resilience and maintain trust in a volatile digital landscape.
References List: Cost of Data Breaches in the Energy Sector Report
- IBM Security – Cost of a Data Breach Report 2024
https://www.ibm.com/think/insights/whats-new-2024-cost-of-a-data-breach-report - Faction Networks – Energy Sector Breach Costs
https://www.factionnetworks.com/security-and-privacy-news/green-energy/lights-out-average-cost-of-a-breach-in-the-energy-sector-is-6-3-million - Sophos – State of Ransomware in Critical Infrastructure 2024
https://news.sophos.com/en-us/2024/07/17/the-state-of-ransomware-in-critical-infrastructure-2024 - Carrier Management – Rise in Utility Cyber Attacks
https://www.carriermanagement.com/news/2024/09/12/266426.htm - Reuters – Halliburton Data Breach (2024)
https://www.reuters.com/technology/cybersecurity/halliburton-reports-unauthorized-exfiltration-information-2024-09-03 - The Sun – Spain Blackout Investigation (2025)
https://www.thesun.co.uk/news/34704888/spain-opens-sabotage-probe-power-surge - Atlas Oil – Official Ransomware Attack Statement
https://www.atlasoil.com/2024-atlas-data-breach - Wikipedia – Volt Typhoon Threat Actor
https://en.wikipedia.org/wiki/Volt_Typhoon - Wired – CyberAv3ngers Hacking Campaigns
https://www.wired.com/story/cyberav3ngers-iran-hacking-water-and-gas-industrial-systems - TechRadar – Solar Power Vulnerabilities
https://www.techradar.com/pro/millions-of-solar-power-systems-could-be-at-risk-of-cyber-attacks-after-researchers-find-flurry-of-vulnerabilities - DNV Cyber Priority 2025 Report
https://www.dnv.com/cyber/insights/publications/energy-cyber-priority-2025 - VENMINDER – Third-Party Risk in Energy Sector
https://www.venminder.com/blog/third-party-risk-management-best-practices-energy-industry - UMA Technology – NIST CSF Implementation in Energy
https://umatechnology.org/energy-sector-cybersecurity-framework-implementation-guidance
