Risk Management and Trading Activities (Tables)

9 Months Ended

Sep. 30, 2011

Net pre-tax gains on derivative contracts used for corporate risk management not designated as hedges


	Three Months					Nine Months
	Ended September 30,					Ended September 30,
	2011			2010		2011			2010
				(Millions of dollars)
Commodity	$	—		$	—	$	1		$	(7	)
Foreign exchange		(25	)		48		(12	)		(4	)

Total	$	(25	)	$	48	$	(11	)	$	(11	)

Pre-tax gains (losses) from trading activities


	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2011			2010			2011			2010
				(Millions of dollars)
Commodity	$	(5	)	$	(118	)	$	45		$	26
Foreign exchange		7			2			(1	)		8
Other		(52	)		12			(42	)		(5	)

Total	$	(50	)	$	(104	)	$	2		$	29

Fair Value of the Corporation's financial assets and liabilities based on hierarchy


										Collateral
										and
										counterparty
	Level 1			Level 2			Level 3			netting			Balance
				(Millions of dollars)
September 30, 2011
Assets
Derivative contracts
Commodity	$	283		$	1,288		$	320		$	(305	)	$	1,586
Foreign exchange		—			1			—			—			1
Interest rate and other		2			71			1			(1	)		73
Collateral and counterparty netting		(58	)		(220	)		(20	)		(133	)		(431	)

Total derivative contracts		227			1,140			301			(439	)		1,229
Other assets measured at fair value on a recurring basis		10			90			—			(1	)		99

Total assets	$	237		$	1,230		$	301		$	(440	)	$	1,328


Liabilities
Derivative contracts
Commodity	$	(490	)	$	(1,645	)	$	(557	)	$	305		$	(2,387	)
Foreign exchange		—			(36	)		—			—			(36	)
Other		—			(61	)		(7	)		1			(67	)
Collateral and counterparty netting		58			220			20			85			383

Total derivative contracts		(432	)		(1,522	)		(544	)		391			(2,107	)
Other liabilities measured at fair value on a recurring basis		—			(58	)		(1	)		1			(58	)

Total liabilities	$	(432	)	$	(1,580	)	$	(545	)	$	392		$	(2,165	)


December 31, 2010
Assets
Derivative contracts
Commodity	$	65		$	1,308		$	883		$	(304	)	$	1,952
Foreign exchange		—			1			—			—			1
Interest rate and other		—			17			—			—			17
Collateral and counterparty netting		(1	)		(274	)		(19	)		(213	)		(507	)

Total derivative contracts		64			1,052			864			(517	)		1,463
Other assets measured at fair value on a recurring basis		20			49			3			—			72

Total assets	$	84		$	1,101		$	867		$	(517	)	$	1,535


Liabilities
Derivative contracts
Commodity	$	(324	)	$	(2,519	)	$	(474	)	$	304		$	(3,013	)
Foreign exchange		—			(12	)		—			—			(12	)
Other		—			(10	)		—			—			(10	)
Collateral and counterparty netting		1			274			19			34			328

Total derivative contracts		(323	)		(2,267	)		(455	)		338			(2,707	)
Other liabilities measured at fair value on a recurring basis		—			—			—			—			—

Total liabilities	$	(323	)	$	(2,267	)	$	(455	)	$	338		$	(2,707	)

Changes in financial assets and liabilities at fair value based on level 3 inputs


	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2011			2010			2011			2010
				(Millions of dollars)
Balance at beginning of period	$	372		$	41		$	412		$	84
Unrealized gains (losses)
Included in earnings		(85	)		105			19			163
Included in other comprehensive income		13			(18	)		30			62
Purchases		415			347			1,932			782
Sales		(536	)		(397	)		(2,131	)		(745	)
Settlements		(162	)		(1	)		(194	)		(46	)
Transfers into Level 3		(222	)		215			(211	)		57
Transfers out of Level 3		(39	)		12			(101	)		(53	)

Balance at end of period	$	(244	)	$	304		$	(244	)	$	304

Net transfers into and out of each level of the fair value hierarchy


	Three Months						Nine Months
	Ended September 30,						Ended September 30,
	2011			2010			2011			2010
				(Millions of dollars)
Transfers into Level 1	$	(4	)	$	95		$	(12	)	$	123
Transfers out of Level 1		39			89			318			23

	$	35		$	184		$	306		$	146


Transfers into Level 2	$	28		$	(8	)	$	34		$	121
Transfers out of Level 2		198			(403	)		(28	)		(271	)

	$	226		$	(411	)	$	6		$	(150	)


Transfers into Level 3	$	(222	)	$	215		$	(211	)	$	57
Transfers out of Level 3		(39	)		12			(101	)		(53	)

	$	(261	)	$	227		$	(312	)	$	4

Gross and net fair values of the Corporation's risk management and trading derivative instruments


	Accounts			Accounts
	Receivable			Payable
	(Millions of dollars)
September 30, 2011
Derivative contracts designated as hedging instruments
Commodity	$	97		$	(281	)
Other		56			(3	)

Total derivative contracts designated as hedging instruments		153			(284	)


Derivative contracts not designated as hedging instruments (*)
Commodity		12,040			(12,657	)
Foreign exchange		6			(41	)
Other		60			(107	)

Total derivative contracts not designated as hedging instruments		12,106			(12,805	)


Gross fair value of derivative contracts		12,259			(13,089	)
Master netting arrangements		(10,897	)		10,897
Cash collateral (received) posted		(133	)		85

Net fair value of derivative contracts	$	1,229		$	(2,107	)


December 31, 2010
Derivative contracts designated as hedging instruments
Commodity	$	225		$	(483	)
Other		10			(2	)

Total derivative contracts designated as hedging instruments		235			(485	)


Derivative contracts not designated as hedging instruments (*)
Commodity		11,581			(12,383	)
Foreign exchange		7			(19	)
Other		31			(32	)

Total derivative contracts not designated as hedging instruments		11,619			(12,434	)


Gross fair value of derivative contracts		11,854			(12,919	)
Master netting arrangements		(10,178	)		10,178
Cash collateral (received) posted		(213	)		34

Net fair value of derivative contracts	$	1,463		$	(2,707	)


(*)		Includes trading derivatives and derivatives used for risk management.

Energy Marketing [Member]

Derivative [Line Items]

Gross volume of the Corporation's derivative instruments outstanding


	September 30,		December 31,
	2011		2010
Crude oil and refined petroleum products (millions of barrels)		27		30
Natural gas (millions of mcf)		2,532		2,210
Electricity (millions of megawatt hours)		242		301

Trading [Member]

Derivative [Line Items]

Gross volume of the Corporation's derivative instruments outstanding


	September 30,		December 31,
	2011		2010
Commodity
Crude oil and refined petroleum products (millions of barrels)		2,966		3,328
Natural gas (millions of mcf)		4,910		4,699
Electricity (millions of megawatt hours)		268		79
Foreign exchange (millions of U.S. Dollars)	$	621	$	506
Other
Interest rate (millions of U.S. Dollars)	$	127	$	205
Equity securities (millions of shares)		34		35

Corporate Risk Management [Member]

Derivative [Line Items]

Gross volume of the Corporation's derivative instruments outstanding


	September 30,		December 31,
	2011		2010
Commodity, primarily crude oil (millions of barrels)		22		35
Foreign exchange (millions of U.S. Dollars)	$	940	$	1,025
Interest rate swaps (millions of U.S. Dollars)	$	895	$	310

- Definition

Tabular disclosure of the total amount of gains or losses for the period which are included in earnings or resulted in a change to net assets which gains or losses have arisen from the use of significant unobservable inputs (Level 3) to measure the fair value of assets and liabilities. Such gains or losses are attributable to the change in unrealized gains or losses relating to those assets and liabilities so valued which are still held at the reporting date and which change are also considered for disclosure; it may be expected that a description of where those unrealized gains or losses are reported in the statement of income or the statement of financial position would also be disclosed.

+ References+ Details

- Definition

Tabular disclosure of the fair value measurement of assets and liabilities which includes [financial] instruments measured at fair value that are classified in stockholders' equity. Such assets and liabilities may be measured on a recurring or nonrecurring basis. The disclosures which may be required or desired include: (1) for assets and liabilities measured on a recurring basis, disclosure may include: (a) the fair value measurements at the reporting date; (b) the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets or liabilities (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3); (c) for fair value measurements using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (ii) purchases, sales, issuances, and settlements (net); (iii) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs); (d) the amount of the total gains or losses for the period in subparagraph (c) (i) above included in earnings (or changes in net assets) that are attributable to the change in unrealized gains or losses relating to those assets and liabilities still held at the reporting date and a description of where those unrealized gains or losses are reported in the statement of income (or activities); (e) the valuation technique(s) used to measure fair value and a discussion of changes in valuation techniques, if any, during the period and (2) for assets and liabilities that are measured at fair value on a nonrecurring basis (for example, impaired assets) disclosure may include, in addition to (a) above: (a) the reasons for the fair value measurements recorded; (b) the same as (b) above; (c) for fair value measurements using significant unobservable inputs (Level 3), a description of the inputs and the information used to develop the inputs; and (d) the valuation technique(s) used to measure fair value and a discussion of changes, if any, in the valuation technique(s) used to measure similar assets and/or liabilities in prior periods. Where the quoted price in an active market for the identical liability is not available, the Level 1 input is the quoted price of an identical liability when traded as an asset.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 3

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19279-110258

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 32

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 5

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

Reference 6: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 6

-Footnote 4

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19190-110258

+ Details