Last week, we attended the Pipeline Pigging and Integrity Management Conference and Exhibition (“PPIM”), the pipeline industry’s only forum devoted exclusively to maintenance, inspection, and integrity evaluation. We wanted to see the extent to which the industry was embracing machine learning to manage and protect its most valuable assets – pipelines. In this report we detail our findings, but before we dive in below is a brief summary of our last report.
In our report ESG Investment for the Petroleum and Gas Pipeline Industry, we detailed that:
- Sophic Capital client OneSoft Solutions (OSS:TSXV, OSSIF:OTC) is an Environmental, Social and Governance (“ESG”) firm making the fossil fuel pipeline industry safer for workers, communities and the environment;
- U.S. pipeline failures may be occurring, in part, because legacy data analysis techniques depend upon Microsoft Excel, which only typically analyze 5 to 10% of total pipeline data collected;
- OneSoft has a machine learning, predictive analytics solution that analyzes 100% of the pipeline data — faster, more accurately, and at a lower cost;
- Six Fortune 100/500 companies, including Phillips 66 (PSX:NYSE) and an unnamed industry Supermajor, have licensed OneSoft’s solution following extensive validation efforts;
- OneSoft’s current clients operate about 7% of the U.S. piggable pipeline market, and OneSoft has almost half of the addressable U.S. piggable market in its sales funnel;
- OneSoft has: several opportunities to capture the remaining addressable U.S. piggable market; a plan to target the non-piggable market (developing new software modules for direct assessment); options to add new revenue generating functionality to its solution; and potential to expand beyond its current target market, and;
- OneSoft has a sizable competitive moat, making it difficult for new entrants (of which there currently are none that have developed and commercialized a machine learning and advanced data science platform to aggregate and analyze data across the industry) to catch up and compete.
Download the full report HERE.