Cyber risks in smart oil & gas assets: The three key pillars

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The oil and gas industry is undergoing a digital transformation. From floating liquefied natural gas (FLNG) facilities to AI-optimized refineries, smarter assets are revolutionizing how hydrocarbons are extracted, processed and transported. While these innovations lead to greater efficiency, safety and sustainability, they also introduce new vulnerabilities

As operational technology (OT) systems become more intelligent and interconnected, the industry has emerged as a top target for cybersecurity attacks. To understand this growing exposure, think about the industry’s digital infrastructure supported by three pillars: connectivity, complexity and consequence. Each pillar represents a risk dimension that must be reinforced to protect smarter assets across the energy value chain. 

Pillar 1: Connectivity – Cyber risks in smart asset integration

Smarter assets thrive on connectivity. Devices like smart wellheads, remote terminal units (RTUs) and digital twin platforms rely on real-time data exchange with centralized systems. This connectivity enables remote monitoring, predictive maintenance and optimized production. 

For example, FLNG facilities operate offshore and integrate advanced control systems, sensors and satellite communications to manage liquefaction and storage. These facilities transmit performance data, environmental metrics and safety alerts to onshore teams in real time. Similarly, refineries use cloud-connected distributed control systems (DCS) and edge computing to optimize throughput and monitor emissions. 

However, this connectivity also creates entry points for cyber threats. Once air-gapped OT systems are now integrated with enterprise information technology (IT) networks and cloud platforms. A compromised sensor or unsecured gateway can allow adversaries to infiltrate critical systems. The 2021 Colonial Pipeline ransomware attack showed how even indirect access to IT systems can disrupt fuel supply chains. 

In today’s landscape, every connected asset—from a smart valve on an FLNG to a refinery’s emissions monitoring system—is a potential vulnerability. 

Pillar 2: Complexity – The hidden vulnerability 

Modern oil and gas operations are built on a complex web of technologies. A single FLNG unit may include AI-driven condition monitoring, automated safety shutdown systems and dynamic process modeling software. Refineries, too, integrate legacy systems with cloud-based optimization tools, mobile dashboards and vendor-managed control modules. 

This complexity introduces hidden risks. Many smart devices run outdated firmware, rely on insecure protocols or lack basic authentication. Patch management becomes a logistical challenge when assets are distributed across offshore platforms, remote terminals and sprawling refinery campuses. 

The convergence of IT and OT adds another layer of complexity. Cybersecurity teams must now understand both domains with the caveat that traditional IT tools don’t detect threats in OT environments. A misconfigured firewall or overlooked software dependency can create cascading vulnerabilities across the entire operation. 

Pillar 3: Consequence – The cost of cyber failure

The oil and gas industry is a top target not just because of its connectivity and complexity—but because of the consequences of failure. A cyberattack on an FLNG’s control system could halt production, cause environmental damage or endanger lives. A breach in a refinery’s safety instrumentation system could trigger explosions, toxic releases or prolonged shutdowns. 

 Even data-centric assets are at risk. Proprietary geological models, drilling strategies and trade secrets stored in cloud platforms are valuable targets for espionage and sabotage. 

 The stakes are high and adversaries know it. Nation-state actors, cybercriminals and hacktivists increasingly target oil and gas infrastructure due to its strategic importance. The rise of ransomware-as-a-service and supply chain attacks means even minor vulnerabilities can be exploited with devastating impact. 

Reinforcing the pillars: A call to action 

To protect smarter assets—from FLNGs to pipelines to refineries—oil and gas companies must reinforce each of the three pillars: 

  • Connectivity: Implement network segmentation and monitor traffic continuously. Limit exposure by ensuring only essential systems are connected and access is tightly controlled. 

  • Complexity: Invest in asset visibility and vulnerability management. Standardize configurations, automate patching and ensure cybersecurity teams are trained across both IT and OT domains. 

  • Consequence: Conduct risk assessments that factor in operational impact. Develop incident response plans tailored to critical infrastructure and simulate attack scenarios to improve readiness. 

As the oil and gas industry embraces digital transformation, the exposure of smarter assets to cyber threats grows exponentially. The three pillars of risk—connectivity, complexity and consequence—highlight the critical need for a comprehensive cybersecurity strategy. Black & Veatch’s Cyber Asset Lifecycle Management (CALM) services represent this proactive approach, enabling organizations to protect their assets at every stage of their lifecycle. Whether building new facilities or upgrading legacy systems, investing in OT cybersecurity is a strategic decision that strengthens your operational resilience and enhances your overall risk management. 

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