What is an oil cooled transformer and how does it function in power transformers?

An oil cooled transformer is a type of power transformer that uses oil as a coolant to dissipate heat generated during operation. The oil circulates through the transformer, absorbing heat from the core and windings, and then flows to a radiator or cooling system where it releases the heat into the environment. This process maintains optimal operating temperatures, ensuring efficient performance and longevity of the power transformer.