What Is a Christmas Tree (oil and gas)?
A Christmas tree is a piece of apparatus that provides flow keep watch over on a oil or gas neatly. Christmas timber are a vertical assembly of valves with gauges and chokes that allow for adjustments in flow keep watch over along with injections to stimulate production. Christmas timber are so-called because the choice of portions can resemble a Christmas tree if you have the proper amount of imagination. The valves that come with probably the most decorations on the Christmas tree are opened when the oil or gas neatly is in a position to produce and the processing and storage facilities are ready to acquire. The other decorations are units that facilitate pressure relief, monitoring and chemical injection.
Key Takeaways
- Throughout the oil & gas industry, a Christmas tree is a piece of heavy equipment that controls the flow produced by way of a neatly.
- This can be a separate piece of {{hardware}} that connects to the wellhead after the drilling has ceased and the neatly begins pumping oil or gas.
- Often used on offshore rigs as subsea timber, flooring wells are also generally employed.
How Christmas Trees Art work
Christmas timber are used in oil exploration and production in flooring and underwater oil and gas wells. Christmas timber on flooring wells are also known as flooring timber, as they connect to the wellhead that is visible on the flooring of a neatly.
Christmas timber used in offshore drilling and extraction are referred to as subsea timber. Subsea timber can be vertical or horizontal consistent with how the clutch valves – the valves set on the flow path and ready to final off production – are designed. Subsea timber have even a lot much less of a resemblance to a Christmas tree, then again the name persists out of customized.
The Wellhead Versus the Christmas Tree
The Christmas tree is now and again puzzled for the wellhead of an oil neatly. The Christmas tree sits atop the wellhead, then again it is a separate piece of apparatus. There’s no Christmas tree on the wellhead right through drilling operations. As a substitute a blowout prevention instrument sits atop the wellhead since the neatly is drilled and casing/tubing strings are inserted. When the neatly is moved to production, the Christmas tree is affixed for flow keep watch over. So the wellhead is supply from the start whilst the Christmas tree is an additional piece of apparatus that comes into play when the neatly moves from drilling to production.
Technical Words
For plenty of patrons, figuring out the definition of a Christmas tree isn’t going to replace their option to oil and gas firms. Buyers principally focus on commonplace company metrics like return on invested capital (ROIC) and source of revenue previous to depreciation, pastime, taxes and amortization (EBITA). Previous this, oil and gas patrons can in brief clutch concepts like showed and imaginable reserves and web acres.
So there is also questionable worth in consuming a substantial amount of of the technical wisdom spherical oil and gas production. That discussed, for patrons that want to pay attention to oil and gas investing, mastering the vocabulary is part of the process as numerous the information is very technical while you switch previous the fundamental public filings.
