Energy Infrastructure Security 2003: protecting staff, assets and operations from sabotage and potential terrorist threat

In this new environment of potential terrorist activity, the energy sector finds itself in an unenviable position. The industry provides critical services and has an immense infrastructure spread across the nation. Such a critical industry provides numerous attractive targets to groups dedicated to terror operations. Many of these energy facilities are unprotected or have only basic security measures in place. In light of what occurred on September 11th, energy firms, large and small, must consider all possible scenarios as they begin to plan to meet the challenge of new threats.

In this new environment of potential terrorist activity, the energy sector finds itself in an unenviable position. The industry provides critical services and has an immense infrastructure spread across the nation. Such a critical industry provides numerous attractive targets to groups dedicated to terror operations. Many of these energy facilities are unprotected or have only basic security measures in place. In light of what occurred on September 11th, energy firms, large and small, must consider all possible scenarios as they begin to plan to meet the challenge of new threats.

"We think the threat of another attack is there, and terrorists will target power sources."

Source: Stephen Whitley - Chief Operating Officer for ISO New England

This study is designed to help your firm protect assets and intellectual capital from threats posed by sabotage and terrorist attack.

Recommendations include:

- Information to formulate detailed safety & security policies
- Methods to safeguard Information Systems from unauthorized access
- Ways to enhance system operating reliability
- Infrastructure policy action plan

Energy Infrastructure Security contains actionable & relevant recommendations for:

- Senior Management
- Corporate Planners
- IT Professionals
- Human Resources Managers

The study examines:

- How to model & quantify energy infrastructure security risk
- Current infrastructure vulnerabilities
- Case studies on actual & potential energy sector terrorism Federal legislation
- Traditional security measures
- Information technology system security

For a complete index of this report click on http://www.researchandmarkets.com/reports/114

Report Index:

1 Summary & Overview 9

1.1 Introduction 9
1.2 Terrorism & Sabotage in the US 9
1.3 Report Structure 13

2 Terrorism In the Energy Sector 15

2.1 Introduction 15
2.2 US Petroluem Industry 19
2.3 US Natural Gas Supplies 23
2.4 US Power Grid 24
2.5 US Nuclear Facilities 28
2.6 Conclusions 29

3 Measuring Energy Infrastructure Risk 31

3.1 Introduction 31
3.2 Role of the FBI 31
3.3 Evaluating Risk 33
3.4 RAM-D Model 34

4 Traditional Security Responses 39

4.1 Introduction 39
4.2 Government Policy & Recommendations 39
4.3 Preventing Intrusion 41
4.4 The Importance of Building Design 42
4.5 Conclusions 47

5 Human Resources, Planning & Procedure 49

5.1 Introduction 49
5.2 Incident Planning 51
5.3 Conclusions 62

6 Nuclear Plant Security 63

6.1 Introduction 63
6.2 Calculating and Responding to Nuclear Risks 65
6.3 NRC Security Program Review 68
6.4 Conclusions 69

7 Cyber Security 71

7.1 Introduction 71
7.2 Common System Vulnerabilities 73
7.3 Conclusions 82

8 Case Studies 83

8.1 Introduction 83
8.2 Case Study 1 - El Paso pipeline rupture ruptures market 83
8.3 Case Study 2 - Bhopal India, the high price of industrial "sabotage" 89
8.4 Case Study 3 - Cantor Fitzgerald... A firm carries on 91
8.5 Case Study 4 - Cano Limon Pipeline: The Cost of Chronic Terror 93
8.6 Conclusions 96

9 Recommendations & Conclusions 98

9.1 Introduction 98

9.2 Ways to Improve Safety, Security & Reliability 98
9.3 Policy Recommendations and Action Points 99
9.4 Recommendation 1 - Energy Security Summit 100
9.5 Recommendation 2 - State Energy Analysis 101
9.6 Recommendation 3 - Deployment of New Technology 101
9.7 Recommendation 4 - Federal Funding 101
9.8 Recommendation 5 - Development of Localized Generation 102
9.9 Preparing for an Uncertain Future 102

10 Appendix 1 - Additional "IT" Recommendations 104

10.1 Windows Vulnerabilities 104
10.2 Top Vulnerabilities To Unix Systems (U) 110

11 Appendix 2 - Sources 118

TABLES

Table 1: Terror Attack History 1920-1993 10
Table 2: Terror Attack History 1995-1997 11
Table 3: Terror Attack History 2000-2001 12
Table 4: Security Costs 18
Table 5: US Refineries & Refining Capacities, 1987 - 2001 20
Table 6: Natural Gas Prices Topock, AZ -(California border) 1995-2000 ($/mmbtu) 86

FIGURES

Figure 1: US Strategic Petroleum Reserve Locations 22
Figure 2: NERC Regions 25
Figure 3: US Electric Utility Receipts by NERC Region, 1995-99 27
Figure 4: US Nuclear Reactor Sites 28
Figure 5: Concrete Safety Shape Profiles 44
Figure 6: Concrete Strengths & Tolerances 46
Figure 7: Portable Concrete Barriers 47
Figure 8: Profile of Electric Power System 73
Figure 9: West Coast Natural Gas Supply System 85
Figure 10: Interstate Natural Gas Pipeline & Delivery Capacity into California 87
Figure 11: Union Carbide Stock Price, Nov.1, 1984 - Jan. 31, 1985 90
Figure 12: Map of Colombia 94

1 SUMMARY & OVERVIEW

"We think the threat of another attack is there, and terrorists will target power sources."

Source: Stephen Whitley - Chief Operating Officer for ISO New England

1.1 Introduction

Tragedy has always been a catalyst for change. Notable events in US and world history have frequently served as "wake up calls", prompting businesses and governments to implement new measures, regulations and laws to protect people and property.

Loss of life on the luxury liner Titanic prompted new safety regulations for passenger ships. A fire at New York City's Triangle Shirtwaist Factory in 1911 caused the deaths of 146 young women and was the catalyst for the development of workplace safety and fire regulations. The tragic events of September 11th, 2001, and their aftermath, are expected to have a similar impact on all aspects of US society.

In this new environment of potential terrorist activity, the energy sector finds itself in an unenviable position. The industry provides critical services and has an immense infrastructure spread across the nation. Such a critical industry provides numerous attractive targets to groups dedicated to terror operations. Many of these energy facilities are unprotected or have only basic security measures in place. In light of what occurred on September 11th, energy firms, large and small, must consider all possible scenarios as they begin to plan to meet the challenge of new threats.

1.2 Terrorism & Sabotage in the US

Terror activities, while commonplace throughout the world, were not previously seen as a significant threat to the US. While the US has not experienced continuous terror activity by foreign groups or nationals, there have been terror attacks in the past.

The report contains a brief synopsis of some of the more significant acts of sabotage / terrorism carried out in the United States, or against US citizens overseas.

These events show that Americans and their institutions have been the targets of various terror attacks, both domestic and foreign, for over 80 years. Many of these actions have been political in nature and the US energy industry should brace itself for potential attacks in the years to come.

1.3 Report Structure

Energy Infrastructure Security contains nine chapters and two appendices and explores current energy infrastructure security issues and conditions in the US. While the examples are US based, the message and recommendations are relevant and applicable to all nations.

The initial chapters of this study take a look at current energy infrastructure conditions.

The oil, gas and power sectors are addressed in detail. A method to quantify this risk is provided. Particular attention is paid to the nuclear energy sector due to the potentially catastrophic effects of an attack on atomic facilities. Potential threats such as vulnerabilities from explosives and sabotage are covered in detail.

Human resource issues are addressed in the next chapter. Information for creating and implementing policies relating to sabotage and bomb threats is provided. The following chapter looks at new, high-tech cyber threats. These technology threats have the potential to seriously harm a firm's operations. Information technology vulnerabilities are identified and solutions are recommended.

The next chapter presents several case studies dealing with the costs and potential impacts of terrorist attacks, their possible effects on energy markets and people.

Finally, a series of actionable recommendations are offered to help firms address, formulate and implement security measures and policies so that they may better safeguard their assets and operations, and most importantly, the safety of their employees.

This study also contains two appendices. The first offers further detail on how to counter cyber threats to both Windows and Unix-based computing systems and the second lists information sources used in the development of this study.

SUMMARY & OVERVIEW

It is the opinion of Utilis Energy that nuclear and cyber attacks have the potential for the greatest impact on an energy firms' operations and the general welfare of the public. For this reason, this study focuses on these issues in greater detail.

This report is not intended to be alarmist in nature. On the contrary, by pointing out vulnerabilities and offering recommendations on how to protect employees, assets, operations and the public, this study hopes to aid energy firms in preventing further terror activity and hopefully assist local, state and federal authorities in assuring security for all.

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REPORT DATA SUMMARY:
Energy Infrastructure Security 2003: protecting staff, assets and operations from sabotage and potential terrorist threat
Publisher Name: Utilis Energy, LLC
Category: Energy & Natural Resources
URL: www.researchandmarkets.com/reports/114