Oxygen can be compressed so that a large amount occupies relatively small space.
Well...this question has two answers. The characteristic of gas that would be used in supplying oxygen cylinders to hospitals is compressibility. Oxygen cylinders are filled to, depending on the gas company you buy yours from, between 2000 and 2500 psi.
Normal atmospheric pressure is 15 psi. (I know I should give you these numbers in kPa, but my gauge is calibrated in PSI.) Compressing the oxygen allows you to fit over 150 times the uncompressed volume in a cylinder. However!
With the exception of very small rural hospitals, no hospital or city fire department wants to receive compressed oxygen. They use so much oxygen that the only efficient way to deal with it is to receive it in liquid form and regasify it as needed.
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