Why Energy Companies Must Rethink Data Privacy as Cyber Threats Increase

The energy sector is facing immediate and increasing cyberattacks. Outdated organization like unsecured folders, shared drives, and all-access permissions have only made matters worse.  

The energy industry now requires a more advanced approach to managing and protecting data.  

This is where smarter document management tools add clarity and peace of mind in an increasingly unpredictable world. 

The Rising Tide of Cyber Threats in Energy  

High-profile breaches are increasingly common. According to Gartner, by 2026, 25% of utility companies are projected to experience grid disruptions due to cyber-physical attacks on distributed energy resources (DERs), as utilities increasingly integrate renewable energy sources into smart networks. 

Here are just a few other examples: 

According to a Semperis survey (April 2025), 62% of utility operators reported being attacked in the last year, and of those, 80% experienced multiple intrusions. Alarmingly, 54% reported permanent data or system corruption. 

ReliaQuest’s 2025 Threat Report reveals that spear‑phishing triggered 81% of security alerts in the utilities sector, and ransomware attacks surged 42% year‑over‑year.   

Trustwave SpiderLabs data shows an 80% increase in ransomware incidents targeting utilities since 2023, with the U.S. accounting for 47% of global utility attacks. The average breach cost in the utilities sector is approximately $500,000, with phishing being responsible for 84% of breaches.   

Finally, IBM’s 2023 Cost of a Data Breach Report states that in 2024, the global average cost of a data breach hit an all-time high of $4.9 million — a 10% increase over the previous year, with 1 in 3 breaches involving shadow data, highlighting how unchecked data sprawl is driving both risk and cost. 

What’s at Stake: More Than Just Data  

Breaches in the energy space aren't limited to data theft. Compromised systems can lead to:  

• Operational disruption: Colonial Pipeline’s outage impacted millions and prompted five-day shutdowns.  
• Regulatory fines: Violations of standards such as NERC CIP or GDPR can result in substantial penalties.  
• Reputational damage: Loss of public trust following outages or data leaks.  
• National security threats: Critical infrastructure, such as grids, pipelines, and refineries, are high-value targets.  

Sensitivity runs deep, covering infrastructure blueprints, environmental impact studies, and compliance documentation. A breach can expose these to misuse, sabotage, or geopolitical exploitation.  

Why Traditional Privacy Approaches Fall Short  

Legacy systems rely on folder-based storage and manual permissions, creating blind spots: 

• Siloed data fragments information and complicates unified access control. 
• Manual permissions introduce errors and inconsistencies, leading to outdated access rights. 
• Poor auditing leaves gaps in traceability, complicating breach investigations.  
• Inefficient remote access hinders field teams and contractors.  
• Document sprawl increases complexity and risk as regulatory requirements evolve.  

Real-World Struggles: When Legacy Tools Break Down  

A major oil and gas company struggled with scattered data across spreadsheets and folders. A merger-driven migration to Omega 365 revealed issues with version control, permissions, and data integrity. The client needed smarter, metadata-driven document management to ensure security and compliance.  

Read the full case study 

How to Strengthen Your Data Privacy and Security  

As organizations handle increasing volumes of sensitive information, adopting smart documentation tools is key to enhancing privacy and security. These intelligent systems offer automated, policy-driven control over content, enabling the following best practices: 

Metadata-Driven Structure 

Instead of relying on traditional folder hierarchies, innovative tools organize documents by metadata, such as document type, project, or confidentiality level; ensuring access is governed by context. This reduces misplacement and the risk of accidental sharing. 

Role-Based Access and Automated Permissions 

Access permissions are dynamically assigned based on user roles and responsibilities. As staff join, shift roles, or leave, permissions automatically update, minimizing administrative burden and preventing unauthorized access. 

Audit Readiness and Compliance Support 

These tools offer detailed logging of document activity, including views, edits, and shares, along with full version histories. This provides a reliable audit trail to help demonstrate compliance with regulations like ISO 27001, GDPR, and NERC CIP.  

Secure Mobile and Remote Access 

Smart documentation platforms enable encrypted access to content from any location, often with offline availability. This ensures remote and mobile teams can work securely without compromising data integrity. 

Automated Data Lifecycle Management 

Retention policies can be enforced automatically, archiving    or deleting documents once they’re no longer needed. This reduces unnecessary data exposure and helps organizations stay compliant with internal and external data governance rules. 

Take Action: Rethinking Privacy as a Competitive Imperative  

Maintaining data privacy is a strategic asset. By investing in modern document management, energy companies can:  

• Reduce risk: Metadata-based security lowers accidental exposure and lateral movement.  
  
• Build resilience: Fast incident response with centralized logging and version control.  
• Enhance collaboration: Securely share documents across departments, partners, and auditors without compromising control. 
• Strengthen reputation: Demonstrate leadership with robust cyber hygiene and smart practices.  

Final Thoughts  

The rise of cyber threats in the energy sector makes it clear that traditional file systems aren’t enough. Integrating document management tools with metadata-driven access, end-to-end auditing, and secure remote capabilities will position energy companies to thrive.  

Ready to secure your energy data against the next threat?  

Talk to our experts to get a personalized consultation and explore how the right document management tools can help you transform risk into resilience.