Kyndryl & AWS: Navigating Cybersecurity in the Energy Sector

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Cyber threats are growing as the oil and gas industry becomes more interconnected
A Kyndryl and AWS survey reveals a significant cybersecurity readiness gap in global enterprises, with oil & gas organisations among the top groups at risk

The energy sector faces unique cybersecurity challenges as, like many other industries, it undergoes rapid digital transformation. 

With increasing interconnectivity and reliance on smart technologies, the energy space must prioritise robust cybersecurity measures to protect critical infrastructure and ensure uninterrupted power supply. 

Data from the International Energy Agency (IEA) suggest that, in 2022, the energy sector experienced an average cost of US$4.72m per data breach in 2022 — a record high.

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Acknowledging that cyberattacks are on the rise in this industry specifically, IEA analysis indicates that utilities face serious difficulties in finding and retaining the skilled professionals needed to defend themselves.

Deloitte similarly found that cybersecurity experts identified the energy sector as the most likely to suffer attacks on industrial control systems that impact operational safety and reliability.

This is further supported by a global survey conducted by Kyndryl with AWS — Cyber Gauge 2024: Navigating the Complex Cybersecurity Landscape — which reveals a stark contrast between perceived and actual cyber readiness among global enterprises. 

The research found that a majority of large chemical, oil and gas organisations reported experiencing a cyberattack that disrupted their IT systems and data within the last year.

Why are oil and gas companies more at risk of cyber attacks?

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Despite 94% of organisations feeling prepared to mitigate cyberattacks, Kyndryl and AWS found that 71% believe they are likely to experience a disruptive incident within the next year that will impact their financial performance.

The two companies conclude that this disconnect highlights the need for improved awareness and enhanced measures to handle sophisticated cyber threats.  

When it comes to oil and gas specifically, the sector reported one of the highest incidences of cyberattacks among surveyed industries, with 56% of organisations experiencing disruptive incidents. 

This places the sector among the top three most affected industries, alongside retail and manufacturing.

The cybersecurity report was carried out by Kyndryl and AWS

Kyndryl and AWS also highlight the significant cyber risks faced by critical infrastructure sectors. The high frequency of attacks in this industry underscores the attractiveness of energy companies as targets for cybercriminals and state-sponsored threat actors.

Oil and gas’ approach to cyber threats

This is a clear indicator of high levels of concern when it comes to cyber threats — particularly in oil and gas given its critical role in global energy supply and economic stability.

Furthermore, the survey reveals that 52% of IT leaders are grappling with operational challenges like preparing for emerging threats such as nation-state and generative AI attacks

For the oil and gas industry, with its complex operational technology systems, these evolving threats pose significant risks.

So why is this important? The survey identifies the challenges inhibiting cybersecurity and explores how organisations are preparing to guard against evolving threats and ensure business.

“The survey findings reveal a complex cyber threat landscape where businesses face persistent threats despite feeling prepared,” says Kris Lovejoy, Global Security and Resiliency Practice Leader at Kyndryl. 

Kris Lovejoy, Global Security and Resiliency Practice Leader at Kyndryl

“With more than half of organisations experiencing disruptive incidents in the last year, it is imperative that businesses make cyber resilience a board-level priority

“Achieving this is not a one-time effort but an ongoing commitment to safeguarding our digital future.”

With more than half of those in chemicals, oil and gas sectors surveyed reporting the highest incidence of cyberattacks, it’s no secret that these incidents are on the rise.

Some predict the rapid development of AI is leading to a lower barrier of entry for bad actors to infiltrate digital systems — meaning it’s imperative that organisations take action now to de-risk themselves from future cyber threats.


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