US warns of Russian Government Cyber Activity Targeting Energy and Other Critical Infrastructure

The U.S. Department of Homeland Security has warned that for at least two years, Russian government cyber actors have targeted government entities and multiple U.S. critical infrastructure sectors, including the energy, nuclear, commercial facilities, water, aviation, and critical manufacturing sectors.

In a joint Technical Alert issued March 15, 2018 by the Department of Homeland Security's U.S. Computer Emergency Readiness Team (US-CERT) and the Federal Bureau of Investigation, the agencies warned of a "multi-stage intrusion campaign by Russian government cyber actors." The report follows an October 2017 alert by computer security firm Symantec of a re-emergence of a sophisticated cyber espionage group known as "Dragonfly."

According to the government agencies' report, the Russian cyber threat actors seem to have deliberately targeted specific organizations, as opposed to pursuing targets of opportunity. In an initial "staging" phase, the campaign used tools like malware, watering holes, and spear phishing to gain access to small commercial facilities' networks -- typically peripheral organizations like trusted third-party suppliers whose networks may be less secure. For example, the threat actors sent emails with malicious attachments appearing to be personnel resumes or contract documents. Clicking on links in the attachments exposed the victims to malware or data harvesting. In a subsequent phase, the threat actors made further use of the staging targets' networks as "pivot points and malware repositories" for use in targeting their final intended victims.

The report says that these Russian government cyber actors used this hacked access for network reconnaissance and collection of information pertaining to Industrial Control Systems (ICS). It describes multiple instances of threat actors accessing workstations and servers on corporate networks that contained data output from control systems within energy generation facilities.

Cyber security is now a significant concern, both domestically and abroad. A February 2018 report by the U.S. intelligence community described the targeting of national security information and proprietary information from US companies and research institutions involved with defense, energy, finance, dual-use technology, and other areas as "a persistent threat to US interests." Last month, U.S. electric grid reliability regulators imposed a $2.7 million penalty on an unidentified utility for its violations of mandatory reliability standards in connection with a data security breach -- the largest fine to date associated with U.S. utility cybersecurity regulation. In that case, a third-party contractor hired by the utility allegedly copied protected data from the utility's network to the contractor's unsecured network -- where it was accessible online without the need to enter a user ID or password, and where it was in fact accessed by one or more unknown outside entities.

In 2014, reports emerged that Russian hackers had found flaws in solar panel monitoring software that, if left unfixed, could allow malicious actors to damage the electric grid. Foreign state-sponsored cyber attacks in 2016 and 2017 against Ukraine and Saudi Arabia targeted multiple sectors across critical infrastructure, government, and commercial networks, causing disruption to Ukrainian energy distribution networks.

US intelligence threat assessment on cyber, energy, infrastructure risks

The U.S. intelligence community has released an unclassified report presenting its assessment of the global context and how threats could affect U.S. actions. The latest Worldwide Threat Assessment finds increasing risk of cyber attacks and threats to U.S. infrastructure, as well as impacts from climate change.

The 28-page report released February 13, 2018, Statement for the Record: Worldwide Threat Assessment of the US Intelligence Community, describes a variety of global and regional threats.

While a disclaimer notes that the order of topics addressed does not necessarily imply the relative importance or magnitude of threats covered in the report, the first category of global threat addressed is cyber threats. According to the assessment, "The potential for surprise in the cyber realm will increase in the next year and beyond as billions more digital devices are connected — with relatively little built-in security — and both nation states and malign actors become more emboldened and better equipped in the use of increasingly widespread cyber toolkits. The risk is growing that some adversaries will conduct cyber attacks — such as data deletion or localized and temporary disruptions of critical infrastructure — against the United States in a crisis short of war. "

Illustrating this threat, the report notes that state-sponsored cyber attacks against Ukraine and Saudi Arabia in 2016 and 2017 targeted multiple sectors across critical infrastructure, government, and commercial networks, including disruption of Ukrainian energy-distribution networks. The report projects that in the next year, "Russian intelligence and security services will continue to probe US and allied critical infrastructures."

The report also notes the complex global foreign intelligence threat environment facing the U.S. in 2018. While it identifies penetrating the US national decisionmaking apparatus and intelligence community as primary objectives for numerous foreign intelligence entities, the report notes that "the targeting of national security information and proprietary information from US companies and research institutions involved with defense, energy, finance, dual-use technology, and other areas will remain a persistent threat to US interests."

The report cites U.S. Energy Information Administration forecasts that 2018 West Texas Intermediate and Brent prices will average $58 and $62 per barrel, respectively, compared to $98 and $109 in 2013. Noting that oil prices have remained low since 2013, the report observes that oil-exporting countries continue to suffer from low prices, and that "their economic woes are likely to continue, with broader negative implications. Subdued economic growth, combined with sharp increases in North American oil and gas production, probably will continue putting downward pressure on global energy prices, harming oil-exporting economies." The report describes impacts of low oil prices on countries including Venezuela, Saudi Arabia and other Persian Gulf oil exporters, Angola, Nigeria, Russia.

The report also notes the existence and impacts of climate change. It observes, "Challenges from urbanization and migration will persist, while the effects of air pollution, inadequate water, and climate change on human health and livelihood will become more noticeable. Domestic policy responses to such issues will become more difficult — especially for democracies — as publics become less trusting of authoritative information sources."

According to the assessment, "The impacts of the long-term trends toward a warming climate, more air pollution, biodiversity loss, and water scarcity are likely to fuel economic and social discontent — and possibly upheaval — through 2018." It notes that the "past 115 years have been the warmest period in the history of modern civilization , and the past few years have been the warmest years on record." It cites extreme weather events in a warmer world as having the potential for greater impacts in the future, as well as increased challenges to government prompted by environmental concerns or water scarcity. The report also notes that nearly half the world's international river basins are exposed to gaps in the agreements governing water supply and dam development, exacerbating this concern.

June 23, 2010 - the history of the Trafton tide mills; Russia-Belarus gas dispute

Monday's paddle brought me through the remains of the Trafton tide mill. What I hadn't realized is that the eastern branch was home to another tide mill owned by the Trafton family.

From the Georgetown Historical Society's A History of Georgetown Island:

The lumber mill on the western branch, which was built by David Oliver and Thomas Trafton, continued to be operated into the first decade of the 20th century, and the mill dam can still be seen. David Oliver, Jr. had a son David of the 3rd generation (grandson of David and Grace). He and his wife, Hannah Stacy, came to Georgetown from Lynn, Massachusetts. He and his father, David Jr., and Thomas Trafton, built their first lumber mill on the eastern branch of the Cove on what is now the Indian Point Road. Later they built a second lumber mill on the west branch of the Cove Thomas Trafton also had a gristmill on the west bank of the western branch, near the former old Post Office at the bottom of the hill in Georgetown Center.

I found an interesting blog, Five Islands Orchard, which provides some more history and information. Apparently the students of the Georgetown elementary school are considering building a demonstration tidal mill at the western Trafton site. Blogger Ben Polito says he did a rough calculation of perhaps 1.4GJ of energy per tide, equivalent to about 390 kWh or 10 gallons of gas. While this might not seem like a lot of energy today -- particularly since harnessing it would likely require a $1 million-plus hydro facility -- the Trafton mill would have provided the energy equivalent of 300 laborers, all for a relatively low cost.

On the international energy news front: the conflict between Russia and Belarus over gas offers a classic example of how energy policy choices interface with national security. Russia's state-owned utility Gazprom first cut off 35% of Belarus's gas supply, then increased the cut to 70% of normal flows, over about $200 million in debt Belarus is said to owe. In response, Belarus has cited $260 million in unpaid tariffs as a reason cut off Russia's access to the international pipeline needed to get Russian gas to Europe. In today's interconnected world, states and nations rely on fuel supply and infrastructure in neighboring jurisdictions. Russia is dependent on Belarus's pipeline to deliver 20% of its total European exports, and Belarus is dependent on Russia for gas to power electric generation, industry, and (in winter) heating. Though this relationship provides each nation with resources it wouldn't otherwise have, friction in the relationship leads to periodic strife such as we see today. Some cite this downside risk as grounds for increased domestic self-reliance and energy security. Indeed, if the situation progresses to where Russia delivers no gas to Belarus, that nation will need to have an alternate fuel source and contingency planning to keep businesses and homes running.

Finally, hay is for horses: a Kennebec River hay farm, during first harvest.

From Energy Policy Update