Christmas tree (oil and gas)

AAA

DEFINITION of 'Christmas tree (oil and gas)'

A vertical assembly of mechanical elements used in oil exploration and production in surface and underwater oil and gas wells, primarily for flow control. Its name is derived from its shape, which roughly resembles a Christmas tree.

INVESTOPEDIA EXPLAINS 'Christmas tree (oil and gas)'

The valves that comprise some of the "decorations" on the Christmas tree are opened when the oil or gas well is ready to produce, and the processing and storage facilities are ready to receive. Other "decorations" are devices that facilitate pressure relief, monitoring and chemical injection. In offshore drilling and extraction, the Christmas tree would onboard the topside. On land, it would be at the wellhead.

RELATED TERMS
  1. Oil ETF

    A category of exchange-traded funds that invest in companies ...
  2. Control Of Well Insurance

    Insurance that provides coverage to companies operating a well ...
  3. 1979 energy crisis

    The 1979 energy crisis in the U.S. was an event of widespread ...
  4. Benchmark Crude Oil

    Benchmark crude oil is crude oil that serves as a pricing reference, ...
  5. Groundwater

    Water that is found underground rather than on the surface.
  6. Non-Hydraulic Fracturing

    Fracturing rock at depth without the use of fluid pressure. Non-hydraulic ...
Related Articles
  1. Chart Advisor

    Is Oil Poised To Move Higher?

    The spot price of crude oil, the primary tracking ETN and a key refiner are all trading near key support levels. Is a bounce in the cards?
  2. Mutual Funds & ETFs

    Want to Go Long Natural Gas? Eye the UGAZ ETN

    Is UGAZ the best way to play natural gas? Maybe not.
  3. Chart Advisor

    These Oil Service Stocks Are Ready For A Move Higher

    In the oil services sector, active traders have been trying hard to establish a floor and the double bottom pattern that is appearing on the chart suggests that a short-term reversal could be ...
  4. Economics

    Why The Russian Economy Rises and Falls With Oil

    The Russian economy depends on profitable oil production to pay for the cost of government, prop up the ruble, and provide most of it exports revenue.
  5. Economics

    How Oil Prices Impact the U.S. Economy

    Now that the United States has increased oil production through shale oil and fracking, low oil prices can harm the U.S. oil industry and its workers.
  6. Mutual Funds & ETFs

    Take Advantage of Cheap Oil, Invest in these ETFs

    With crude oil prices at record lows, investors should consider oil ETFs over oil company stocks as ETFs more closely mirror the price of oil
  7. Options & Futures

    Do Oil and Natural Gas Prices Rise And Fall Together?

    Do the prices of crude oil and natural gas affect each other? Investopedia explores price patterns and provides analysis.
  8. Investing

    Countries Near Economic Collapse

    These four countries are nearing economic collapse.
  9. Economics

    What Do You Need To Know About Inflation?

    When it comes to inflation, there is no shortage of opinions: one side argues the Fed should raise rates, and the opposition says the Fed should stay put.
  10. Economics

    Asian LNG Prices: Not Likely To Rise Anytime Soon

    Asian LNG prices could stay low for an extended period of time, due to low oil prices, less demand and new LNG-producing projects on various continents.

You May Also Like

Hot Definitions
  1. Interest Rate Risk

    The risk that an investment's value will change due to a change in the absolute level of interest rates, in the spread between ...
  2. Income Effect

    In the context of economic theory, the income effect is the change in an individual's or economy's income and how that change ...
  3. Price-To-Sales Ratio - PSR

    A valuation ratio that compares a company’s stock price to its revenues. The price-to-sales ratio is an indicator of the ...
  4. Hurdle Rate

    The minimum rate of return on a project or investment required by a manager or investor. In order to compensate for risk, ...
  5. Market Value

    The price an asset would fetch in the marketplace. Market value is also commonly used to refer to the market capitalization ...
  6. Preference Shares

    Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a ...
Trading Center