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In 2-dimensions, it is the y-axis. In 3-dimensions, though, the x and y axes form the horizontal plane and the z-axis is the vertical axis.
I believe it is horizontal by vertical. (example: 12x24)
Area = 2*vertical height
That's really going to depend on the height of the 500bbl vertical oil tank. We could also calculate the answer if we knew the shape and dimensions of the floor of the tank, but you haven't included that information either.
It is normally a parallel line parallel to the x or y axes on the Cartesian plane.