Energy companies are significantly increasing their investment in cybersecurity as they confront what is viewed as the “greatest risk” to the industry, according to new research. The Energy Cyber Priority report from DNV Cyber revealed that two-thirds (65%) of energy professionals believe their leadership considers cybersecurity the most pressing risk to their businesses.
The report also found that more than 70% of energy professionals (71%) expect their companies to boost cybersecurity investments in the coming year. A growing awareness of cyber risks at the leadership level is evident, with 78% of professionals expressing confidence that their leaders fully understand the risks posed by cybersecurity threats.
“Cybersecurity should be a priority for all players in the energy sector to achieve the climate goals and guarantee energy security, as geopolitics make the world more hostile and uncertain,” said Ditlev Engel, CEO of Energy Systems at DNV. Engel emphasized that the increasing reliance on digital technologies to drive the energy transition also raises vulnerabilities, as these technologies expose companies to more cyber risks.
Employee training programs have also contributed to the industry's progress in managing cyber threats, with 84% of surveyed professionals reporting that they know how to respond if they detect a potential cybersecurity issue. Additionally, two-thirds (67%) of professionals anticipate greater investments in operational technology (OT) security as part of ongoing efforts to protect the systems that manage and monitor physical assets.
Despite the progress, the report highlights that the digital transformation driving the energy transition also broadens exposure to cyber risks, due to factors like the use of sensitive data, increased dependence on third-party tools, and the creation of connected environments that allow hackers to infiltrate systems.
The report also underscores the increasing role of geopolitical factors in cybersecurity concerns. Three-quarters (75%) of energy professionals said that their organizations have heightened their focus on cybersecurity due to rising geopolitical tensions over the past year. Additionally, the threat of cyberattacks from foreign powers has become a growing concern, with 72% of respondents reporting worries about such attacks, up from 62% in 2023.
The threat landscape is further complicated by the rising concerns about cyber-criminal gangs and insider threats, with 79% of professionals expressing concerns about criminal gangs, up from 50% last year, and 62% now worried about malicious insiders, an increase from 51% in 2023.
With these evolving risks, energy companies are recognizing the need to prioritize cybersecurity as part of their broader strategy to ensure resilience during the ongoing energy transition.
