The definition of Christmas Tree (oil and gas)’
A Christmas tree is a equipment, which provides flow control for mining oil or gas well. Tree vertical Assembly of fittings with sensors and valves that allow for adjustment of the flow control and injection to stimulate production. Tree so called, because the set of components may resemble a Christmas tree, if you have the right amount of fancy. Valves, which include some of the decorations on the Christmas tree are opened when the oil or gas well is ready for production and processing and storage of ready to receive. Other ornaments are devices that facilitate pressure relief, monitoring and chemical injection.
Breaking down the Christmas Tree (oil and gas)’
Trees are used in exploration and oil production in surface and underwater oil and gas wells. The Christmas tree on the surface of the wells, also known as surface trees, as they connect at the wellhead, which are visible on the surface of the well. Trees used in offshore drilling and production are called underwater trees. Underwater trees can be vertical or horizontal depending on how the master valves – the valves installed in flow paths and able to close the production – intended. Underwater trees have even less resemblance to a Christmas tree, but the name was retained out of tradition.
Against the wellhead Christmas Tree
Christmas tree is sometimes confused at the wellhead. The Christmas tree sits on top of the wellhead, but is a separate piece of equipment. No Christmas tree at the wellhead during drilling operations. Instead of the blowout device towering above the wellhead as the well is drilled and insert the casing/pipe lines. When a good is moved to the production tree is to control the flow. Therefore, the wellhead is present from the beginning, and a Christmas tree is the additional equipment that comes into play when a good shifts from drilling to production.
Christmas trees and technical terms
For most investors, knowing the definition of the tree will not change its approach to oil and gas companies. Investors mainly focus on universal metrics of the company, as the return on invested capital (ROIC) and earnings before depreciation, interest, taxes, depreciation and amortization (Kiev). In addition, oil and gas investors can quickly learn such concepts as the proved and probable reserves and net acres. So it is of questionable value to the consumption of too much technical information for oil and gas. However, for investors who want to specialize in the field of oil and gas investment, development of vocabulary is part of the process, as most of the information is highly technical, once you go beyond the basic state filings.