The Impact of the Colonial Pipeline Shutdown
As our nation has seen increased gas prices and shortages, so many have realized that our energy supply is vulnerable to attacks. One of the concerns for energy supply disruption has long been traditional attacks like a bombing of a pipeline or the disruption of a traditional energy supply route via land or sea. Confidence in backup systems also ran high, and the belief that reserves or that the government would release some of the strategic supply also tempered fears that any disruption would be disastrous. However, the recent cyberattack on the Colonial Pipeline demonstrates that a cyberattack can be just as disruptive and hurtful to the economy as a traditional attack.
What is the Colonial Pipeline?
The Colonial Pipeline is a 5,500 mile gas pipeline from New Jersey to the Gulf Coast in the United States. It transports nearly half the gasoline used by the East Coast and is the largest pipeline for gas in the country. The pipeline transports over 100 million gallons of gas each day and it reaches 50 million Americans. This means that Americans in North Carolina, Georgia, Virginia, and other states were impacted by shortages that hampered their ability to get to the grocery store, necessary medical appointments, and get to work for those who are commuting again.
What were the impacts of the cyberattack?
Besides the obvious shortage at the gas pump and cash crunch that came from higher prices, a few other impacts were felt. Airlines had to tap emergency reserves and some even had to alter flight routes to add refueling stops to keep their planes going. The federal government was forced to declare an emergency in 17 states and the District of Columbia in order to make the transportation of fuel easier to ease the shortage.
What was the purpose of the cyberattack and how did it happen?
The cyberattacks were carried out by extortionists who were looking for a quick payoff after breaking through the security systems. Colonial paid millions of dollars to the ransomware extortionists who compromised their security systems. As a precaution, Colonial then shut down the pipeline.
What does this mean going forward?
While gas prices have stabilized, and supply appears to be normalizing, the impact of the Colonial Pipeline shutdown is more far-reaching than the immediate availability crisis. Companies like Colonial will have to install better countermeasures against cybercriminals while ensuring that a backup supply is available should tragedy befall them yet again.
How Businesses Use an Energy Broker
For so many in the energy broker business, the focus of a brokerage is on the residential side, where there is sometimes more familiarity and a more straightforward way of doing business. Relatively few individual families worry about their carbon footprint and don’t have the time or sometimes the wherewithal to inquire as to where their energy comes from. Families also usually don’t care about round the clock customer service as long as an energy broker is reasonably accessible and there is a low price on their bill for the energy they consumed. However, businesses can be more demanding customers and ask for more services given the larger amount of energy they consume. Below are some ways businesses determine how to use an energy broker.
Your track record of success
Like last quarter’s sales figures, your track record of success for other clients will have a direct impact on how future clients perceive you. Your ability to respond to a current client’s needs will very certainly have an impact on whether or not they keep you on. Insights into the market and the ability to stay one step ahead of trends will help nail down client loyalty when they begin to evaluate how their business uses an energy broker.
How many suppliers you have access to
You’re only as good as your last deal, and how many suppliers you have access to will help provide the diversity you need to make deals happen for your clients. The ability to find the best contract for your clients is key, and the more suppliers you have access to, the better price and contract you can offer up. Supply and diversity of supply are the key to offering your clients the best possible deal, so they remain your clients and not someone else’s.
If you provide good, prompt customer service
Sometimes, competing on price isn’t enough, especially when the differential between suppliers and the brokers that work to connect clients is relatively small. For many, the difference in making the pick in an energy broker is customer service that takes needs into account, responds quickly, and helps them make accurate decisions that save the company time, money, and efficiency costs. Customer service is key in many businesses, and that’s no different when it comes to how businesses use energy brokers.
Can you clearly explain any fees or conditions?
Sometimes, energy brokers and others get involved in sales talk that doesn’t mean much to the customer and leaves them feeling confused and unsure about what they signed up for. Clearly explaining any obligation the customer is taking on will leave them feeling reassured about you and your ability to be an honest broker.
As in any businesses, the needs and requirements of every customer vary per business or family. However, by keeping these tips in mind, you’ll be exactly what every business needs when they’re looking for and using an energy broker.