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OneSoft Solutions: The Future Of O&G Machine Learning Pipeline Integrity

Mar. 08, 2021 12:25 PM ETOneSoft Solutions Inc. (OSSIF), OSS:CA28 Comments
Soren Rasmussen profile picture
Soren Rasmussen


  • OneSoft offers a novel software-as-a-service machine learning service focused on oil and gas pipeline data aggregation and is quickly building an unbreachable moat.
  • O&G pipeline companies accrue a net savings of 3.3 million dollars simply by switching legacy processes to OneSoft's software.
  • OneSoft currently has no competitors, no debt, and plenty of cash. The global pipeline evaluation business is $1.1 billion and the TAM has potential for growth (water/sewer, and railroads).
  • OneSoft's software enables O&G companies to easily meet new regulatory laws.

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OneSoft Solutions (OTCQB:OSSIF) offers a novel software-as-a-service (SaaS) machine learning service focused on pipeline data aggregation and intelligent predictive solutions. I believe new contracts with oil and gas (O&G) pipeline companies throughout 2021 will create a "data advantage" for OneSoft. This will create an unbreachable moat centered around OneSoft's one-of-a-kind predictive capabilities, attractive SaaS cost savings, and the easy ability for companies to transition into new regulatory laws.

The ability to reduce unnecessary costs, repairs, and digs is a huge asset to O&G companies. This technology has the opportunity to revolutionize the ~$1 billion industry. Stricter regulations mandate that O&G companies transition legacy processes to smart cloud-based data aggregation. Cognitive Integrity Management (CIM) offers simple compliance tailored to O&G regulations and makes this process seamless. The recent contract with The Fern River Pipeline (Berkshire Hathaway subsidiary - 1 billion dollar pipeline) highlights OneSoft's impending "data advantage." This further leads to "consumption economics." As OneSoft's predictive capabilities improve, O&G companies will demand OneSoft's machine learning capabilities.


OneSoft Solutions provides a cloud-based, SaaS pipeline integrity management (PIM) suite to the oil & gas industry. OneSoft's mission is to predict pipeline failures and thereby save lives, benefit the environment and reduce O&G companies' costs through machine learning, data science, and cloud computing. OneSoft's PIM system, Cognitive Integrity Management, is powered by Microsoft Azure that utilizes machine-learning and enables pipeline operators to avert pipeline failures and easily comply with regulations. CIM operates through multi-year contracts, ranging from 3-5 years in length, and deploys consumption economics, meaning that as more significant new pieces of intellectual property, functionality, and solutions are added to CIM, OneSoft can increase prices and

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Soren Rasmussen profile picture
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Comments (28)


Large U.S. Pipeline Company Adopts OneBridge's Machine Learning SaaS Solution
EDMONTON, AB / ACCESSWIRE / April 7, 2021 / OneSoft Solutions Inc.
suresh1234 profile picture
@RangeAccrual Any speculation about who this might be?
Soren Rasmussen profile picture
@Muttik24 Hey Muttik, your the man and thanks for posting this! I am glad to see a 50% YOY revenue increase. I think as OneSoft proves it has superior technology and a good market fit we will see larger YOY increases. -Soren
@Soren Rasmussen

Good article and also nice to see the follow-on engagement via comments.

Can i ask what your source is for the below - was that a public comment Brandon made that i can access?

"COO Brandon Taylor roughly estimates that revenue per mile may increase 2-3x from present levels over the next 5-10 years".

Soren Rasmussen profile picture
Hey, I super appreciate your comment @Straight_Shooter_85

I have been in dialogue via email with Brandon Taylor and Dwayne Kushniruk. I'll see if I can find the email and send it to you.

I also took a fair amount of information from several public resources.

This presentation I found super informative.


I'm sure you have probably watched this presentation but figured I'd attach the link anyway.

Great article Soren, I have a few questions:
1. Given that the company doesn't disclose how many pipeline miles are currently under management, how many miles do you estimate they are currently operating? ( or total piggable lines of unboarded customers) .
2. You state " Other major pipeline operators (Chevron, TransCanada, EnBridge) have attempted (and failed) to build machine learning (ML) software to ingest pipeline data. This suggests that operators believe ML would improve integrity results.". Where did you find information regarding these attempts?

3. Dont they already realize around 80USD or recurring revenue per data mile?
The company hasn´t disclosed true ARR ( annual recurring revenue) excluding data mile ingestion fees, have you tried to estimate this ARR for 2021?
Thanks for your time
Soren Rasmussen profile picture
@lobster3533 Hey Lobster, appreciate your great comment and questions, they are helpful!

1. OneSoft's contracted mileage for 2020 was 55,000 miles. I speculate this number to have increased to around 70,000 to date.

2. The information I gathered regarding other pipeline operators was from Google, in relation to partnerships with undisclosed operators that attempted and failed to build ingestion algorithms.

3. I estimated recurring uploads, subscriptions, and module fees are currently generating ~$45-50 per mile per year, which is just ~5% of the annual cost savings that CIM provides.

OneSoft states they are unsure where revenue per mile may reside in the long-run. $75-80 USD is the near-term target (as you stated), but Brandon Taylor estimates that revenue per mile may increase 2-3x from present levels over the next 5-10 years.

Some newly developed modules are currently priced at $600-700 per mile and OneSoft is exploring use cases for CIM which cost $30,000 per mile via traditional legacy methods. Non-piggable are miles although none are currently under contract represent the majority of the addressable market and non-piggable miles are inspected 5x more frequently than piggable miles and may therefore generate significantly greater revenue.

Not sure if this directly answers your questions but hope it helps and I appreciate your comment. -Soren
@Soren Rasmussen Thanks for the quick and extended reply Soren. Regarding their contracted mileage, do you have any clue of what would their mileage would like if every single one of their clients eventually uses CIM for its whole mileage?
Thank your very much, i think we are near the inflection point and client adoption should ramp up in the upcoming 2 years
Soren Rasmussen profile picture
@lobster3533 Ah yes, this is a great question and helps paint a powerful picture of the potential total-addressable-market that Onesoft possesses.

I am in contact with Onesoft management and will try to get an exact number on total clients and potential mileage.

I think that non-piggable functionalities are going to be huge for Onesoft in 2021. Non-piggable mileage presents ~3 million miles of TAM.

I agree with you and you stated that Onesoft is reaching an inflection point. Assuming $75-400 per mile at maturity, but let's lowball it and value it at $80 (will be much higher in the long run). Let's assume near term, in the next 2 years Onesoft can capture 1/4 of this total market (4 million total pipeline miles (piggable and non-piggable). This would be 1 million contracted miles x $80 per mile = $80 million in revenue per year.

I will continue to dialogue with Onesoft management and create further updates with more accurate info. -Soren
Soren Rasmussen profile picture
@Muttik24 Oh nice! This is great and I super appreciate you posting this Muttik.
Patrick Irish profile picture
@Muttik24 Nice to see they are expanding the moat.
@Soren Rasmussen I signed up for email notifications from investors relations via their website. Comes in handy when wanting to keep up on any possible press releases they may issue.
I have invested in this company for years. The applicability of their technology is far reaching and I'm surprised, based on the success they've already had with supermajors, that they're not on the radar of more investors. This is a solid company and exactly the type of company that provides environmental reliability for the transport of o&g.
Patrick Irish profile picture
@Johnnyinthehouse I think its the long game they are playing. Low prices to gain customers and methodically improving their product to ensure it adds value. Revenue is light and they don't make money so it doesn't screen well. But people who follow this company know in a few years that picture could be dramatically different and this software may become indispensable to lots of major companies around the world.
Soren Rasmussen profile picture
@Johnnyinthehouse Hey Johnny, appreciate your comment and I totally agree, far-reaching technology and environmentally beneficial. I think as more major contracts unfold, 2021 will ping OneSoft on investor's radars. -Soren
Jeremy Blum profile picture
I am confused by this statement "OneSoft is the sole operator in the pipeline evaluation industry. " I am aware of at least two other firms that use PIGs to evaluate pipelines, MG and CELP. What OneSoft appears to have as an edge is AI. But the other two have a lot more data. Can you explain the advantage over the incumbents.
Doesn't this excerpt explain the advantage it has? One Soft gets rid of the slow process and chances of mistakes being made by engineers overlooking pages and pages of data when the measurements are taken.

Traditional pipeline evaluation is performed with a "pig" (the name of a pipeline inspection tool). The pig slogs down the pipeline to gather data on the infrastructure of the pipe. Once collected (usually done by a third-party vendor), the data is then uploaded to an Excel file and sent to pipeline operators who tediously comb through vast pages of data; a cumbersome process. Estimates state that only 6% of pipeline data is analyzed. Traditional data collection is slow and often takes up to 6 months to transfer all the data to the pipeline company. This is a slow, manual, and inaccurate process.
Soren Rasmussen profile picture
@Jeremy Blum Hey Jeremy, appreciate your comment and I agree with you that I could have clarified this part of the article better. I follow your page and you have a lot of great articles and investment theses. I will attempt to explain OneSoft's advantage as succinctly as possible.

From my research, I have gathered that OneSoft is leading PIM’s transition from on-premise, manual processes to cloud-based, data-driven modalities. As you mentioned, MG and CELP have more total data but the integration is extremely cumbersome, costly, and often inaccurate.

The fact that OneSoft operates in close partnership with Microsoft, which is promoting on-premise-to-cloud conversions across all verticals is huge! CIM is how Microsoft is attempting to modernize integrity management. CIM is superior to current PIM data evaluation processes across all parameters – anomaly identification, cost, speed, and convenience – and is the only ML-powered, cloud-native PIM software in commercialization. CIM is protected by staunch entry barriers, namely, its repository of pipeline inspection data, which is the largest such database in the world.

Hope this helps! And I look forward to reading your future articles. -Soren
Soren Rasmussen profile picture
@Muttik24 Hey Muttik, appreciate your comment and your support offering clarification! -Soren
Patrick Irish profile picture
Great first article on a company I love. The company is helping prevent future leaks, saves its customers money, well capitalized, and insiders are aligned with shareholders. To me, that makes a great investment over a long period of time.
Soren Rasmussen profile picture
@Patrick Irish Hey Patrick, appreciate your comment. I agree everything is well aligned with OneSoft. I also like that OneSoft's predictive learning can prevent costly future environmental leaks. I've got some more interesting articles in the works and I gave you a follow too. -Soren
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