Thomas Russell Co.: New port plant busy
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STEPHEN HOLMAN / Tulsa World
Thomas Russell, president of Thomas
Russell Co., has moved his operations to the Tulsa
Port of Catoosa, where cryogenic processing units
are manufactured for the energy industry. |
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By ROD WALTON World Staff Writer
8/7/2007
CATOOSA -- The oil and gas boom has
rewarded Thomas Russell's faith and patience.
Russell, at age 70, started building gas
processing plants again three years ago after selling
his previous company in 2000. He started small, with
about six employees and a big reputation for quality
workmanship.
Work was slow at first, though, but that was OK because
the newly minted Thomas Russell Co. was finding its way.
The outfit built its units at a north Tulsa space rented
from Cust-O-Fab.
The domestic exploration boom -- fueled by higher energy
prices and more efficient technologies -- pushed Russell
to move his manufacturing plant this summer to a
warehouse at the Tulsa Port of Catoosa industrial
complex.
"We wanted to do more," he said.
Russell bought the warehouse from Tuloma Crane and
Rigging for about $1.25 million late last year. He has
spent about $1 million renovating and upgrading the
plant for producing cryogenic processing units.
And business is good.
Thomas Russell Co. may ship as many as six modular units
this year. These plants, which can process 25 million to
250 million cubic feet of natural gas daily, carry price
tags as high as $20 million when installed at the well
site.
Altogether, the company has about 10 projects going on.
Russell now employs 30 people, including 10 full-timers
and 20 contracted laborers.
"It's beyond any expectation we ever had," said Lamar
Seale, vice president of sales. "What we're doing is
pretty amazing."
The success is a result of good timing, adaptability and
some long-term working relationships, the company's
owner said.
Taking advantage of the drilling boom, Russell decided
to build state-of-the-art cryogenic units, which use
extreme cold to help process various components from the
natural gas.
Russell also made a commitment to hire people he knew
well. Many of them worked for Russell before he sold T.H.
Russell Co. to Houston-based Hanover Co. seven years
ago. Some -- like Seale and Russell's son, Matt -- even
toiled for Hanover before signing up with their old
boss.
"We're blessed with a really good team," said Matt, who
is vice president of engineering. Russell's other sons,
Glenn and Neal, also work in leadership roles at the
company.
Russell was teaching mechanical engineering at the
University of Tulsa when, after waiting out a
non-competitive agreement with Hanover, the family began
talking to a Bolivian driller several years ago.
One thing lead to another, and suddenly the Russells had
another company to run.
"They called and said they wanted it," Matt Russell
recalled. "We started hiring people and built it."
Russell's "skid-mounted units," which are modular plants
built on girder-type foundations, can process and
separate components of natural gas in multiple ways.
First, it takes out acid gas -- a combination of carbon
dioxide and hydrogen sulfide -- to acceptable levels.
The intense cryogenic method, which reduces processing
temperatures as low as 250 degrees below zero, also
separates other gases such as ethane, propane, butane
and helium for respective markets.
The remaining natural gas flows by pipeline for further
production.
The intense scientific and logistic challenges in
building one of Russell's units means that the company
sets aside nine months for planning and fabrication,
then another three months for assembly. The tanks hold
back thousands of pounds of gas pressure per square
inch, so safety and security go hand in hand.
That's why Russell likes having so many trusted,
longtime employees in the shop.
"We insist in quality, and we never cut corners," he
said. "That's the beauty of having people you know. You
don't have to worry about it."
Thanks to the boom, Thomas Russell Co. currently is
building only for domestic producers in Oklahoma, Texas,
Kansas, Utah and Colorado. And, despite its proximity to
the Port of Catoosa and McClellan-Kerr Arkansas River
Navigation System, all of his products move by truck.
Nonetheless, Russell was thrilled to find a warehouse
site that already included a 20-ton crane way -- a
sliding overhead crane system -- and had lots of space
inside. He believes it will make any further expansion
easier.
"It was a godsend for us," Russell said. "I can't
believe how lucky we were."
