Petrolsoft Corporation

Petrolsoft Corporation

Company type	Private
Industry	Software, Supply chain management
Founded	1989
Founder	Bill Miller, David Gamboa
Defunct	2000
Fate	Acquired by Aspen Technology, Inc.
Headquarters	San Diego , United States
Area served	United States, International (including Argentina and Australia)
Key people	Bill Miller, David Gamboa, Gordon Hartogensis
Products	Supply chain management software for petroleum sector
Number of employees	50
Parent	Aspen Technology, Inc. (from 2000)

Petrolsoft Corporation (1989–2000) was a software firm focused on supply chain management solutions specifically designed for the petroleum sector. Established in 1989 at Stanford University by entrepreneurs Bill Miller and David Gamboa, the company was officially incorporated in 1992. Petrolsoft was a trailblazer in implementing demand-driven inventory control systems tailored to petroleum supply chains.

History

The idea stemmed from David Gamboa’s personal experience with his family’s gasoline station business, where cash flow difficulties were linked to imbalances in fuel inventory. Bill Miller’s analysis confirmed this was a widespread issue throughout the industry. Their innovative approach, founded on principles of inventory proportionality, became the cornerstone of Petrolsoft’s primary product offering.

In 1993, Gordon Hartogensis, a Stanford computer science graduate, joined as the third partner to spearhead product development efforts. Petrolsoft broadened its product suite to encompass sales forecasting, demand consolidation, remote monitoring of inventory and sales, along with transportation logistics optimization for downstream petroleum and bulk liquid supply chains.

Technology

Petrolsoft’s software optimized fuel deliveries by addressing the complexities inherent in managing tank truck compartments and storage tanks at service stations. For instance, a truck with four compartments capable of carrying multiple fuel grades could be loaded in up to 256 configurations; Petrolsoft’s system identified the best option based on forecasted demand for each fuel type.

The platform generated accurate hourly demand predictions for every fuel grade at retail locations and established ideal delivery schedules within defined "delivery windows"—timeframes allowing replenishment just before stock depletion while respecting tank capacities. By aggregating these delivery windows across an entire network, the system enabled efficient scheduling of tank truck fleets.

This automated replenishment process enhanced inventory control, improved fleet usage, cut distribution expenses, and reduced labor requirements. Petrolsoft extended this just-in-time methodology beyond service stations to include bulk terminals and refineries, driving greater efficiency throughout the petroleum supply chain.

Influence

Early adopters included prominent oil companies such as Sunoco, ARCO, Mobil, Exxon, and Tosco, helping Petrolsoft expand its footprint across the United States and into international markets with clients like YPF (Argentina) and Ampol (Australia). The company experienced rapid growth, earning recognition on the Inc. 500 list of fastest-growing private companies in both 1998 and 1999. At its peak, Petrolsoft employed roughly 50 professionals worldwide with offices in San Diego, London, and Singapore, offering multilingual software solutions to support global operations.

In September 2000, following an extensive sales process and pilot testing phase, Aspen Technology acquired Petrolsoft. Soon after, Chevron became one of its largest U.S. customers. In May 2001, Petro-Canada implemented Petrolsoft’s software to oversee most sites in Ontario and Quebec before expanding coverage nationwide by 2003. That same year, Irving Oil entered into a contract as well. These collaborations generated millions in annual cost savings by optimizing supply chain management practices.

Before Petrolsoft introduced its technology, the petroleum sector relied on a "push" manufacturing model driven primarily by market pricing rather than actual consumption data. Petrolsoft revolutionized this approach by integrating demand forecasting and inventory management tools that enabled real-time monitoring of end-user demand. This advancement optimized transportation logistics—including tank trucks and pipelines—and distinguished between steady branded demand and spot price-driven fluctuations. The technology transformed downstream petroleum operations by minimizing stockouts at retail outlets, reducing inventory carrying costs, and lowering per-gallon delivery expenses—resulting in increased profitability for all users.

Acquisition

On June 1, 2000, Petrolsoft Corporation became part of Aspen Technology, Inc. (AZPN), a publicly traded software firm focused on process manufacturing solutions, through an all-stock deal valued near $60 million. In the months that followed, Petrolsoft's Supply Retail software was merged with Aspen Technology's PIMS platform, which supports crude selection and refinery operations planning. This acquisition broadened Aspen’s suite of petroleum-related software offerings, delivering a comprehensive solution that spans from crude procurement and production to final customer delivery, thereby strengthening its presence and competitive position within the petroleum sector.

Further reading

• Crama, et al.; Production Planning Approaches in the Process Industry CORE Discussion Paper, 2001.
• Ronen, David, Dispatching Petroleum Products Operations Research, May-Jun. 1995, vol. 43, No. 3, pp. 379–387.
• Lason, Leon S. et al., Survey of Nonlinear Programming Applications Operations Research, Sep.-Oct. 1980, pp. 1029–1073.
• Enterprise Profit Management for the Chemical Value Chain Accenture, Dec. 6, 2001.
• Korzeniowski, Paul et al., Trading Exchanges Have the ‘Big mo’, But Users Should Proceed with Caution SupplyChainBrain.com, Jun. 2000.
• Fransoo, Jan Cornelis, Production control and demand management in capacitated flow process industries Technishe Universiteit Eindhoven, 1993.
• Petroleum Refinery Planning and Optimization Using Linear Programming, Jan. 31, 2007.
• OSHA Technical Manual—Petroleum Refining Processes Section IV: Chapter 2
• Supply chain technology Hydrocarbon Processing, vol. 80, No. 9, Sep. 2001.
• Weitzel, Dale, Managing refining supply chains from E-to-E World Refining, vol. 10, No. 10, Dec. 31, 2000.
• Dempster Mah et al., Planning Logistics Operations in the Oil Industry Journal of the Operational Research Society, 2000.
• Escudero, L.F. et al., CORO: modeling and optimization for oil supply under uncertainty European Journal of Operational Research, Vo. 114, 1999.
• Loos, P. et al., Production Planning and Scheduling in Process Industries Computers in Industry, vol. 36, 1998.
• Bolander, S. et al., System framework for process flow industries Production & Inventory Management Journal, vol. 34, No. 4, 1993.
• MRP II software suitability for process industries? Control and Instrumentation, Oct. 1991.