Supply Chain Management in Energy Industries


David Jacoby, President of Boston Strategies International, has authored the definitive book on operations management in the oil and gas industry: Optimal Supply Chain Management in Oil, Gas, and Power Generation (PennWell, 2012).

Part I of the new book explains how World-Class Supply Management can improve reliability, raise productivity, lower purchase cost, lower operating cost, and lower working capital requirements. Topics addressed are arranged as follows:

  • Capex project supply chain risk mitigation: principles and methods
  • Engineering and procurement of equipment and services for minimum cost and risk
  • Operations and maintenance cost reduction: principles and methods
  • Operational safety and environmental risk management: principles and methods
Part II provides examples of how these concepts apply to specific areas, for example:
  • Upstream oil & gas
  • Midstream hydrocarbon transport
  • Downstream oil & gas
  • Power industry


“David Jacoby, an internationally recognized specialist, has produced yet another book with concise and practical framework and strategies for optimizing resources in the supply chain management activities, cutting through the labyrinth of the complexities of the unique oil, gas and power industry. It is an extremely well written and remarkable book, highly recommended for professionals and practitioners in the supply chain business.”

Dr. Diran Fawibe, CEO, International Energy Services Ltd.

The author was amazingly able to write this book so technical managers and engineers would be able to use it as a reference and guide to understand various supply strategies, while supply chain professionals would find it as a comprehensive resourceful guide to most oil and gas activities, including tools for managing risks and for defining well balanced supply strategies. The examples provided in this book are a refreshing stimulus for anyone interested in supply in the oil and gas industry.”

Dr. Hamza Abada, Process Improvement Director, RasGas Ltd

“Amazing book. Thanks for writing it.”

Artur Osipyan (MBA, CPSM, CAPM), Upstream O&G Supply Chain Professional

“I just wanted to let you know I found your book Optimal Supply Chain Management in Oil, Gas and Power Generation very helpful. I am in charge of supply/procurement at an oil jobber and learned a lot from your book. Thanks!”

Brian Gibson, Pricing and Procurement Analyst, Duncan Oil Co.

“David Jacoby’s highly regarded book addresses the specific supply chain management characteristics and needs of oil, gas, and power companies, and contains a wealth of industry-specific examples.

Jacoby provides a toolbox for large-scale capital expenditure decision making and for transforming capital and operation expenditures to exert a visible financial impact in oil, gas, and power companies. The supply chain risk management decision analysis tools offered by Jacoby will help operators increase economic value added while enhancing safety and stewardship of the environment.

This book is an invaluable reference resource for chief operating officers; chief financial officers; engineers; vice presidents of supply chain, operations, or production; and directors and managers of procurement, purchasing, operations, or materials management.”

Steve Hill, Editor, PennWell Corporation

“FINALLY, someone who gets it and can document it to help everyone else understand!  Thank you so much for coalescing what I have been thinking since the early 80’s.  You and Dr. Abada (foreword) have put into words what I have been exploring and trying to explain for almost 30 years.”

Mike Garner, Procurement Manager , Southwest Energy Co.

“As an in-house Supply Chain Management Consultant with thirty years of experience as a practitioner, I welcome this most informative book and warmly recommend it to anyone who is interested in understanding Supply Chain Management in the energy business.

While effective Supply Chain Management is a cornerstone of the success of leading companies, it is also the home to large numbers of latter-day snake oil salesmen in their ArmaniTM suits peddling photogenic PowerPointTM slide packs of one-size-fits-all miracle cures.  The siren calls of ‘quick wins’ from ‘low-hanging fruit’ barely concealing the airbrushed logo of the previous client.  The imperative for a company to do better, whether is it is to maximize a competitive advantage, or to maximize profitability or to just create a shelter from an economic storm, provides rich pickings for these generalist consultancy houses.
Standing out from all of this noise, David Jacoby and his formidable team at Boston Strategies have developed and compiled a valuable toolkit of successful strategies for the implementation of world-class Supply Chain Management.
Following on from the excellent Guide to Supply Chain Management, David Jacoby has specifically tailored the strategy toolkit to the energy business, in this new book: Effective Supply Chain Management in Oil, Gas, and Power Generation.

First and foremost, the book recognizes the stark realities of the economics of the energy business, whereby what might work brilliantly for one industrial manufacturer may have no discernible long term benefit at all for an oil company.  It is the economic research that sets this book apart.  As a wise older colleague often reminded me when I was a very junior buyer, time spent in reconnaissance is seldom wasted.The toolkit is filled with energy industry specific know-how and is illustrated with examples of successful supply chain implementations.”Gerald Sheils, Procurement Manager, Saudi Aramco

To purchase in hardcover version, click here or check with any major bookseller. To purchase in ebook format, click here.