Cybersecurity in the US Oil and Gas Industry Connected Oilfields Could Open a Pandora s Box

Transcription

1 Cybersecurity in the US Oil and Gas Industry Connected Oilfields Could Open a Pandora s Box February 2015

2 Contents Section Slide Number Executive Summary 3 Research Scope, Objectives, Background, and Methodology 6 Definitions and Segmentation 13 Market Overview 17 Mega Trends and Industry Convergence Implications 22 Technology Analysis 30 Upstream Segment Analysis 37 Midstream Segment Analysis 42 Downstream Segment Analysis 47 US Analysis 52 Conclusions and Future Outlook 58 Appendix 62 2

3 Key Findings Oil and Gas Cybersecurity Market: Key Takeaways, US, Midstream and downstream segments have the greatest risk of a breach. 2 The annual budget spend on cybersecurity ranged from % to % in 2014; the percentage is likely to double in the next to years. 3 Partnerships between value chain participants will be crucial drivers for solution development and implementation. 4 Technologies such as hot patching and or more factor authentication techniques will be required to combat advanced persistent threats in the industry. 4

4 Key Findings and Future Outlook Parameters Current Outlook (2014) Future Outlook (2017) Market Status Competition Solutions Technology Value Proposition Market Entry Barriers Oil and Gas Cybersecurity Market: Current and Future Outlook, US, 2014 and 2017 Control systems in the oil and gas industry are becoming specific targets for cyberattacks. The market is fragmented, with established and new participants offering competitive packages and services. End-user awareness of totally integrated security solutions with automated analysis tools and advanced authentication techniques is increasing. The focus is on security analytics to aid in data flow blueprints as well as solutions that are interoperable in the cloud. Managed services will continue to grow because it provides a flexible operating model for end users with options such as outsourcing of security monitoring. Vendors must have the ability to offer customized, packaged solutions, and have a strong track record in cybersecurity implementation and solutionsupport. The conservative nature of the oil and gas industry coupled with a limited cybersecurity-focused workforce restricts the adoption of new solutions. The oil and gas supply chain will become a primary target for the advanced threats. A more collaborative operating space will exist, with standalone information technology (IT) and automation vendors, industrial security solution providers, and government entities partnering to develop a total security solution for the industry. The focus will shift away from security by default. All commercial off-the-shelf, industrial control system (ICS), and standalone components will be developed in a security-bydesign approach. A hybrid approach that incorporates both siloed and integrated security will be a requirement. Risk management, network segmentation, change control, 2-factor authentication, and security intelligence will be important tools. Monitoring tools will focus on both inbound and outbound connections. A single point of contact on a single platform will be required in digital oilfields to ensure secure operations. The lack of focus on developing digital engineers will hamper the development and implementation of new security solutions. 5

5 Research Scope Base Year 2014 Industry Focus Oil and Gas (Upstream, Midstream, and Downstream) Geographical Scope United States Study Period

6 Research Aims and Objectives Aim The aim of this study is to research and analyze various parameters including industry drivers, challenges, customer behavior, vendor support, and best practices that influence the cybersecurity market for the oil and gas industry. Objectives To evaluate and assess the current state of cybersecurity preparedness To determine unmet needs and pain points related to cybersecurity To understand buying behavior To identify industry best practices, next-generation practices, and new business models 8

7 Key Questions This Study Will Answer Oil and Gas Cybersecurity Market: Key Questions This Study Will Answer, US, 2014 What is the current state of awareness and concern regarding the issue of cybersecurity in the US oil and gas industry? What are some of the critical challenges facing the industry regarding awareness and adoption, and how are those challenges being addressed? How can vendors optimize their support role in executing a cybersecurity strategy? What new business models are emerging from the evolution of digital oilfields? What are the best practices related to cybersecurity in the oil and gas industry? Will implementation of cybersecurity solutions take a siloed approach or a traditional, centralized approach? 9