Crossrock Inc.
The rising cost of gas coupled with its adverse environmental affects has spurred a wide range of changes. It popularized the “staycation” for families unable to afford cross-country trips. It has encouraged eco-friendly ways for daily travel such as bicycling, walking and public transportation. It also has prompted the government to seek out new energy sources. This issue with gas is a talking point that’s been on the lips of Americans since the dawn of this millennium, and it has given alternative fuel advocates a platform to promote new solutions for energy independence.
Crossrock Inc. is one company working toward this goal. Since 1999, the company has capitalized on its niche as a drilling contractor with comprehensive in-house operations.
With knowledgeable employees and well-maintained equipment, the company can transport, fabricate, weld and operate rigs across Eastern Kentucky.
“A big advantage of our people in the field is that we can do everything in house,” says Ron Carlisle, general manager of Crossrock. “A lot of people performing these types of jobs have to contract certain aspects like transporting equipment and welding and fabrication of rigs, whereas we do it all in-house.”
Necessary education
Crossrock began as a division of Interstate Natural Gas, which was founded by Dennis Rohrer and Jerry Kanney. Since 1989, Interstate has owned, operated and/or leased gas wells in Kentucky. Displeased with the performance of its drilling contractors, Rohrer and Kanney formed Crossrock.
“We bought our own rigs, got a good crew and started drilling wells for other firms,” says Rohrer, Crossrock’s president. “Most drilling contractors do not have production, but because I know both sides, it gave us better insight on what was needed when we were hired as a drilling contractor.”
Crossrock first drilled for small independent companies and later added larger oil producers to its client list. In January 2011, Crossrock amicably separated from Interstate. Kanney now heads Interstate while Rohrer continues to guide the direction of Crossrock, which is headed straight for the natural gas industry. Rohrer’s hope is that the rest of the nation will follow.
“For the last 20 years, I’ve been promoting the use of natural gas in vehicles,” Rohrer says. “What can make a big difference in our economy is using natural gas as a vehicle fuel. But the No. 1 thing we’re lacking in this country is education of how it can be used.”
Rohrer says natural gas is widely used in countries in South America as well as Pakistan – which has an estimated 2.3 million cars running on the fuel according to the International Association for Natural Gas Vehicles (IANGV). However, the United States – which according to IANGV has an estimated 110,000 vehicles running on the alternative fuel – has limited natural gas to mainly heating buildings. However, with the rise in oil prices, concern for the environment and the discovery of abundant amounts of natural gas beneath U.S. soil, Rohrer believes the country is ready for conversion.
Natural gas is a colorless, odorless and combustible mixture of hydrocarbon gases that can be converted to a liquid. Like oil and coal, it is a fossil fuel produced from plants, animals and microorganisms from millions of years ago. Tt comes from the same source as oil, but it’s typically found deeper beneath the earth’s surface and is known to burn cleaner and emit less pollution.
“There are several benefits to using natural gas,” Rohrer says. “Much of it goes hand in hand with having cleaner fuel. It creates longer engine life, longer times between oil changes, cleaner emissions and also less use of foreign oil. What’s not to like?”
For Rohrer, the push for natural gas isn’t just business – it’s part of his lifestyle. He drives a vehicle that operates solely on natural gas. He pays $1.39 for a gallon of natural gas. According to AAA’s Daily Fuel Gauge Report, the national average for regular gasoline in December 2010 was $3.01.
Making it possible
Though Rohrer notes there is a tremendous upside to using natural gas, he realizes there is little supply in this country. He lives in Kentucky, but has to drive to North Carolina to fill his gas tank. He says that for natural gas to make an impression on this country, the supply and demand need to happen simultaneously. Companies are making new vehicles that can run on natural gas, but he wants to see older vehicles retrofit to run on natural gas as well.
The technology exists to make it possible. His company was the first in Kentucky to convert a large off-road Caterpillar rock truck to run on liquid natural gas. Crossrock also has conversion kits for its rigs so they can produce 60 percent natural gas and 40 percent diesel. It is also involved with Florida-based D2G, which stands for “diesel to gas.” This company is a manufacturer and advocate of dual-fuel conversions.
“Whatever it takes to get this market going, we are willing to work with whoever we need to,” Rohrer says. “It’s not a one company endeavor, it’s going to take a number of people and more people understanding what the reality is.”
This philosophy of partnership is entrenched within Crossrock because it was formed out of a partnership between Rohrer and Kanney. According to Operations and Administration Manager James Glass, Rohrer and his leadership team have instilled a culture that fosters employee appreciation.
“Our employees are really our associates because they are integral to our success,” Glass says. “This industry has a reputation as being rough, but we try to put a very different face on that – in the way the men are treated and the respect they receive and are due.”