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Definition: Christmas Tree (Oil And Gas)
In the field of Oil exploration and production the mechanical elements used in the surface to control the flow of the crude oil are assembled vertically. The shape of this roughly looks like a Christmas tree from the top. Hence the name is derived from its shape.
The valves which looks similar to decorations on the tree are opened after the other instruments are ready (i.e. wells for extraction of oil, processing, transportation and storage facilities). The case of on land extraction the Christmas tree would be at the wellhead. In case of offshore it would be in the top side.
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