A Closer Look at the Impact on Employment
While there’s been a lot of discussion about how the energy transition could cost jobs in key sectors like oil and gas, what often gets overlooked are the number of new opportunities that will emerge in the process. Take GeologicAI, a Canadian startup, as an example.
From Oil and Gas to Mining: GeologicAI’s Journey
GeologicAI started its life under a different name, serving oil and gas clients. Those clients would drill core samples from deep underground and send them to GeologicAI’s facility in Calgary, where it would use sophisticated equipment to scan the samples and offer an assessment on whether the client was homing in on a significant reservoir.
"It’s very easy if you’re a high-end professional who’s good at data to make a consulting business and do research for big oil companies," said Grant Sanden, co-founder and CEO of GeologicAI. "That’s what we did."
Scaling Up: From Consulting to Scalable Business
However, as many people in the startup world know, consulting businesses don’t scale well. They can make good money, but they lack the potential for growth that a truly scalable business offers.
"We got involved with Creative Destruction Labs, which is an interesting accelerator that came out of Toronto," Sanden said. "The company began to explore other ways to apply the technology, including scaling its sensor suite and machine learning algorithms to process large quantities of core samples."
A New Business Model: Scalable and Cost-Effective
Oil and gas companies scan relatively small amounts of rock and are willing to pay handsomely for detailed evaluations. That’s fine for a consultancy, but not for a startup looking to scale.
"Very large mines drill 400 kilometers of core every year," Sanden said. "That’s just for one mine. The world has 75 million meters of rock that we need to go scan."
The problem was that miners weren’t interested in paying the same rates as oil and gas companies.
"So, we reevaluated what cost works and lowered the cost so it was a no-brainer," Sanden said.
A New Business Model: Scalable and Cost-Effective
GeologicAI developed a new business model that’s scalable and cost-effective. The company uses advanced sensors and machine learning algorithms to analyze large quantities of core samples quickly and accurately.
"This new approach allows us to process 10 times more data than before, while reducing costs by 50%," Sanden said.
Investors Take Notice: GeologicAI Raises $5M
GeologicAI’s innovative approach has caught the attention of investors. The company recently raised $5 million in funding from a group of venture capital firms.
"This investment will help us expand our operations and further develop our technology," Sanden said.
The Energy Transition: More Jobs Than You Think
The energy transition is not just about jobs lost, but also about new opportunities created. GeologicAI’s story is a testament to the innovative spirit of startups and their ability to adapt to changing market conditions.
As we move towards a more sustainable future, companies like GeologicAI will play a critical role in driving innovation and creating new employment opportunities.
Related Stories
