Feb. 14, 2025
By Richard Edmondson
Cybersecurity is no longer just an IT concern—it’s a business-critical issue, particularly in industries like oil and gas, where digital threats pose risks not just to data but to physical infrastructure, supply chains, and national security.
As governments tighten regulations and cyber threats become more sophisticated, businesses can no longer afford to treat security as an afterthought. The question is: Are oil and gas leaders ready to adapt?
The Shift in Cybersecurity Policy: More Than Just Compliance
Historically, cybersecurity in oil and gas has focused on operational technology (OT) systems—the industrial control systems (ICS) that run pipelines, refineries, and drilling rigs. However, with increased connectivity and AI-driven automation, the risk landscape has expanded.
Governments and regulatory bodies are responding with stricter cybersecurity policies, including:
- Stronger Regulatory Oversight – Governments are enforcing mandatory cybersecurity frameworks for critical infrastructure industries like oil and gas.
- Mandatory Risk Assessments – Companies must prove they have identified, assessed, and mitigated security risks—not just for IT but for OT and supply chains.
- Focus on Resilience – New regulations prioritise not just preventing cyber incidents but ensuring companies can rapidly recover from attacks.
For oil and gas executives, this isn’t just compliance—it’s about protecting operations, profitability, and reputation.
The Cost of Underinvesting in Cybersecurity
Despite these policy changes, many oil and gas companies remain underprepared. Cybersecurity is often seen as an IT issue rather than an operational risk, leading to:
- Operational Disruptions – Cyberattacks on OT systems can halt production, damage infrastructure, and cause environmental disasters.
- Financial Fallout – Regulatory fines, legal costs, and lost revenue from shutdowns can run into the hundreds of millions.
- Geopolitical Risk – State-sponsored cyber threats target critical infrastructure, making national security a key concern.
- Reputation Damage – Investors, partners, and customers increasingly favour companies with strong security postures.
- For a sector that relies on trust, efficiency, and uninterrupted operations, underinvestment in cybersecurity is a direct threat to long-term viability.
How Oil & Gas Leaders Must Respond
To turn cybersecurity from a compliance burden into a competitive advantage, leadership teams must take a proactive, industry-specific approach.
Key Actions for Oil & Gas Boards & Executives:
- Prioritise Cybersecurity Investment – Treat cybersecurity as an operational risk, not just an IT function. Allocate budgets accordingly.
- Secure Both IT & OT Systems – Cybersecurity for industrial control systems (ICS) is just as critical as protecting corporate IT infrastructure.
- Integrate Security into Digital Transformation – As AI, IoT, and cloud adoption grow in oil and gas, security must be embedded in every step.
- Develop a Cybersecurity Culture – Train staff at all levels, from field engineers to board members, to mitigate human-related cyber risks.
- Collaborate with Regulators & Industry Leaders – Staying ahead of policy changes ensures compliance and helps influence best practices in the sector.
When cybersecurity becomes a core part of business strategy, companies not only protect assets but also enhance operational resilience, investor confidence, and long-term growth.
Final Thoughts: Cybersecurity as an Industry Imperative
Cyber threats in oil and gas are no longer hypothetical—they’re business realities. Policy changes reflect the growing urgency to secure critical infrastructure against disruptions, financial losses, and geopolitical risks.
The companies that thrive in this evolving landscape won’t just meet cybersecurity standards—they’ll use security as a strategic enabler for innovation and competitive advantage.
So the real question is: Is your cybersecurity strategy protecting your future—or putting it at risk?