Derivatives

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives

Derivatives

For further information regarding the fair value measurement of derivative instruments, including any effect of master netting agreements or collateral, see Note 15. We do not designate any of our commodity derivative instruments as hedges for accounting purposes.

Derivatives that are not designated as accounting hedges may include commodity derivatives used to hedge price risk on (1) inventories, (2) fixed price sales of refined products, (3) the acquisition of foreign-sourced crude oil and (4) the acquisition of ethanol for blending with refined products.

The following table presents the gross fair values of derivative instruments, excluding cash collateral, and where they appear on the consolidated balance sheets as of September 30, 2014 and December 31, 2013:

	September 30, 2014
(In millions)	Asset		Liability		Balance Sheet Location
Commodity derivatives	$	87	$	55	Other current assets
	December 31, 2013
(In millions)	Asset		Liability		Balance Sheet Location
Commodity derivatives	$	21	$	53	Other current assets

The table below summarizes open commodity derivative contracts as of September 30, 2014.

	Position	Total Barrels (In thousands)
Crude oil(a)
Exchange-traded	Long	10,346
Exchange-traded	Short	(23,186	)
Refined Products(b)
Exchange-traded	Long	1,695
Exchange-traded	Short	(3,281	)

^(a)  96 percent of these contracts expire in the fourth quarter of 2014.

^(b)  100 percent of these contracts expire in the fourth quarter of 2014.

The following table summarizes the effect of all commodity derivative instruments in our consolidated statements of income:

	Gain (Loss)					Gain (Loss)
(In millions)	Three Months Ended September 30,					Nine Months Ended September 30,
Income Statement Location	2014		2013			2014			2013
Sales and other operating revenues	$	10	$	9		$	18		$	13
Cost of revenues	145		(170		)	(30		)	(179		)
Total	$	155	$	(161	)	$	(12	)	$	(166	)