Microsegmentation: A Critical Security Strategy for the Energy Sector

The energy sector, encompassing oil, gas, pipeline, and power generation companies, are critical infrastructure. As they increasingly digitize their operations, the need for robust cybersecurity measures has never been more critical. Among the arsenal of security tools available, microsegmentation has emerged as a crucial strategy for protecting critical infrastructure. Let's explore why microsegmentation is vital for the energy sector and how it delivers value across different roles within these organizations.

Oil and Gas Cybersecurity: The Growing Need for Microsegmentation

The oil and gas industry faces unique cybersecurity challenges due to its critical nature and complex operational technology (OT) environments. Recent years have seen a sharp increase in cyberattacks targeting this sector, prompting both government action and industry-wide reevaluation of security practices.

Key drivers for microsegmentation in oil and gas cybersecurity include:

• Expanding attack surface: As OT and IT systems converge, traditionally isolated industrial control systems (ICS) become more vulnerable to cyber threats.
• Regulatory compliance: New government directives and industry standards mandate improved cybersecurity measures for critical infrastructure.
• Legacy system protection: Many energy facilities rely on older systems that cannot be easily patched or upgraded, requiring alternative security approaches.
• Insider threat mitigation: Microsegmentation helps contain potential damage from compromised internal accounts or malicious insiders.

Recent Attacks and Industry Response

The energy sector has experienced several high-profile cyberattacks in recent years, highlighting the urgent need for enhanced security measures:

• Colonial Pipeline ransomware attack (2021): Attackers exploited a compromised VPN account to shut down operations, leading to fuel shortages across the eastern United States.
  • MITRE ATT&CK Tactics: Initial Access, Lateral Movement, Impact
  • Procedures: Exploit Public-Facing Application, Valid Accounts, Data Encrypted for Impact
• Oldsmar water treatment plant breach (2021): An attacker gained remote access to plant controls and attempted to increase chemical levels to dangerous amounts.
  • MITRE ATT&CK Tactics: Initial Access, Execution, Impact
  • Procedures: External Remote Services, Remote Services, System Services

Government and Industry Response

In response to these and other incidents, the U.S. Transportation Security Administration (TSA) issued security directives for pipeline operators, mandating improved cybersecurity measures. Additionally, the International Electrotechnical Commission (IEC) developed the IEC 62443 standard, providing a framework for securing industrial automation and control systems.

Roles and Responsibilities in Energy Sector Cybersecurity

Implementing effective cybersecurity measures, including microsegmentation, requires collaboration across multiple teams:

• Chief Information Security Officers (CISOs): Oversee overall security strategy, ensure compliance with regulations, and manage cybersecurity budgets.
• IT Security Teams: Implement and maintain security technologies, monitor for threats, and respond to incidents.
• OT Engineers: Provide expertise on industrial control systems and ensure security measures don't impact operational reliability.
• Process Engineers: Collaborate with security teams to identify critical assets and define appropriate access controls.
• Compliance Officers: Ensure adherence to industry standards and government regulations.

Each of these roles plays a crucial part in scoping, implementing, and managing microsegmentation initiatives in oil and gas cybersecurity. Note: Read our OT Guide for Security Engineers implementing IEC 62443.

Evolution of Energy Sector Security

Historically, many industrial control systems in the energy sector were air-gapped and physically isolated from external networks. This approach provided a false sense of security and limited operational flexibility. As digitalization progressed, the air gap disappeared, exposing these systems to new risks.

Past methods of securing energy environments included:

• Perimeter-based security: Focusing defenses on the network edge
• Network segmentation: Broad separation of OT and IT networks
• Access control lists (ACLs): Basic traffic filtering between network segments

While these methods provided some protection, they often lacked the granularity and adaptability required to address modern threats effectively.

Microsegmentation in Oil and Gas: Modern Security Techniques

Today's energy sector requires a more sophisticated approach to security, encompassing people, processes, and technology. Three key concepts are driving this evolution in placing microsegmentation as a central pillar include:

Energy Sector Zero Trust Implementation involves assuming that no user, device, or network should be inherently trusted. This approach includes:

• Continuous authentication and authorization
• Least privilege access controls
• Comprehensive monitoring and logging

Least-privilege access ensures that users and systems have only the minimum permissions necessary to perform their functions. Benefits include:

• Reduced attack surface
• Limited potential for lateral movement
• Easier compliance with regulatory requirements

3. Microsegmentation 
Oil and gas microsegmentation takes network segmentation to a granular level, creating secure zones around individual workloads, devices, and even users. Key advantages of microsegmentation include:

• Fine-grained access control: Policies can be tailored to specific applications, devices, locations, or users.
• Improved visibility: Detailed traffic analysis helps identify anomalies and potential threats.
• Adaptive security: Policies can be dynamically updated based on changes in the environment or threat landscape.
• Containment of breaches: By limiting lateral movement, microsegmentation minimizes the impact of successful attacks.

Implementing microsegmentation in energy environments involves:

• Asset discovery and classification: Identifying and categorizing all devices and systems on the network.
• Policy definition: Creating granular rules for communication between different segments.
• Continuous monitoring: Analyzing traffic patterns to detect and respond to anomalies.
• Regular policy reviews: Updating segmentation rules to reflect changes in the environment and emerging threats.

The Future of Energy Sector Cybersecurity

As threats continue to evolve, so too must the cybersecurity practices in the energy sector. Looking ahead, we can expect:

• Enhanced automation: AI and machine learning will play a larger role in threat detection and response, allowing for more dynamic microsegmentation policies.
• Greater IT/OT integration: Security strategies will increasingly bridge the gap between information technology and operational technology systems.
• Improved supply chain security: Microsegmentation principles will extend to third-party vendors and partners, reducing risks from the supply chain.
• Advanced simulation and testing: Digital twins and sophisticated testing environments will allow for more robust security planning without risking operational disruptions.
• Increased regulatory focus: Government agencies will likely continue to refine and expand cybersecurity requirements for critical infrastructure.

Is a Microsegmentation project worth considering for you and your teams?

Microsegmentation has become an essential component of modern oil and gas cybersecurity strategies. By providing granular control, improved visibility, and adaptive protection, it addresses many of the unique challenges faced by oil, gas, pipeline, and power generation companies.

As cyber threats continue to evolve, microsegmentation offers a flexible and powerful tool for protecting critical infrastructure. It enables organizations to meet regulatory requirements, safeguard legacy systems, and maintain operational reliability while defending against increasingly sophisticated attacks.

For CISOs, IT security teams, OT engineers, and process engineers in the energy sector, embracing microsegmentation is not just about compliance—it's about building a resilient and secure foundation for the future of energy production and distribution.

When you are ready to enhance your cybersecurity with state-of-the-art microsegmentation, schedule a call or demo with Elisity and learn how our solutions enable the energy sector and critical infrastructure leaders to ensure compliance and maintain operational excellence in the face of evolving cyber threats.