Securing Energy Communities Against the Rise of Hybrid Warfare

The growing threat of "grey zone" attacks against critical energy infrastructure is not just a concern for global supply chains - it also has significant ramifications for the lives of energy workers and the communities that rely on these projects.

A recent report by insurance broker WTW highlights the rising risk of hybrid warfare tactics targeting marine and offshore energy assets. From cyber-attacks on undersea cables to drone strikes on oil platforms, state actors are employing a range of unconventional methods to disrupt operations without crossing the threshold into outright military conflict.

"Without insurance, many ships will not sail and planes will not fly, so improving our understanding of grey zone risks is vital for the protection of people and assets and the health of global commerce," explains Samuel Wilkin, Director of Political Risk Analytics at WTW.

But beyond the commercial and logistical challenges, the human cost of these hybrid threats should not be overlooked. Many energy projects, particularly in the offshore sector, provide vital employment and economic opportunities for local communities. When these operations are disrupted by attacks, the ripple effects can devastate the livelihoods of workers and their families.

Take the example of an offshore wind farm in a remote coastal region. A successful project not only delivers clean energy to the grid, but also generates high-skilled jobs and supports local businesses. However, if that wind farm becomes the target of a coordinated cyber and drone assault, the resulting downtime and damage could jeopardize the incomes and well-being of hundreds of workers.

Similarly, the shutdown of an oil and gas production facility due to hybrid warfare tactics doesn't just impact global supply - it also threatens the stability and prosperity of the neighbouring towns and cities that rely on that facility for employment and tax revenue.

"Hybrid warfare is likely to continue to rise and evolve, so insurers need to be able to understand the implications of ambiguous grey zone activities to properly assess risk," Wilkin warned. But energy companies and policymakers must also consider the human dimension of these threats, and take proactive steps to protect the livelihoods of the people at the heart of the industry.

This could involve enhancing physical and digital security measures, diversifying supply chains, and ensuring robust insurance coverage. But it also requires a deeper understanding of the communities that depend on these critical energy projects, and building resilience to withstand the disruptive impact of hybrid warfare.

As the geopolitical landscape grows more complex, the energy sector faces not just commercial and operational risks, but also a profound human toll. By prioritizing the protection of energy workers and their communities, industry leaders can safeguard both the backbone of the global economy and the wellbeing of those who power it.