Derivatives (Tables)

6 Months Ended

Jun. 30, 2011

Derivatives

Crude oil collars - Daily quantities and weighted average strike prices

The following table presents the daily quantities and weighted-average strike prices of Occidental’s collar positions as of June 30, 2011 and December 31, 2010:

Crude Oil — Collars	Daily Volume (barrels)	Average Floor		Average Cap
July 2011 — December 2011 (a)	12,000	$	32.92	$	46.27

(a)   At December 31, 2010, these contracts were outstanding with the same daily volumes and terms indicated and also covered the period from January 1, 2011 to June 30, 2011.

Natural gas swaps - Daily quantities and weighted average strike prices

The following table presents the daily quantities and weighted-average prices that will be received by Occidental as of June 30, 2011 and December 31, 2010:

Natural Gas — Swaps	Daily Volume (cubic feet)	Average Price
July 2011 — March 2012 (a)	50 million	$	6.07

(a)   At December 31, 2010, these contracts were outstanding with the same daily volumes and terms indicated and also covered the period from January 1, 2011 to June 30, 2011.

Cash-flow hedges - Schedule of the location and amount of gains and losses reported

The following table presents the pre-tax gains and losses recognized in, and reclassified from, Accumulated Other Comprehensive Income (AOCI) and recognized in income (net sales), including any hedge ineffectiveness, for derivative instruments classified as cash-flow hedges for the three and six months ended June 30, 2011 and 2010 (in millions):

	Periods ended June 30
	Three Months					Six Months
Commodity Contracts	2011		2010			2011			2010
Unrealized gains (losses) recognized in AOCI — effective portion	$	34	$	58		$	(6	)	$	95
Amount of losses reclassified from AOCI into income — effective portion	$	54	$	30		$	76		$	62
Gains (losses) recognized in income — ineffective portion	$	1	$	(3	)	$	—		$	(1	)

Cash-flow hedges - Net after-tax derivative activity in accumulated other comprehensive income

The following table summarizes net after-tax derivative activity recorded in AOCI for the three and six months ended June 30, 2011 and 2010 (in millions):

	Periods ended June 30
	Three Months						Six Months
	2011			2010			2011			2010
Beginning balance — AOCI	$	(122	)	$	(183	)	$	(111	)	$	(227	)
Gains (losses) from changes in cash-flow hedges	21			37			(4		)	60
Losses reclassified to income	35			19			49			40
Ending balance — AOCI	$	(66	)	$	(127	)	$	(66	)	$	(127	)

Gross volumes of outstanding commodity derivatives not designated as hedging instruments

The following table presents gross volumes of Occidental’s commodity derivatives contracts not designated as hedging instruments as of June 30, 2011 and December 31, 2010:

	Volumes
Commodity	2011	2010
Sales contracts related to Occidental’s production
Crude oil (million barrels)	9	8
Third-party marketing and trading activities
Purchase contracts
Crude oil (million barrels)	205	136
Natural gas (billion cubic feet)	888	833
Precious metals (million troy ounces)	1	13
Sales contracts
Crude oil (million barrels)	191	144
Natural gas (billion cubic feet)	998	1,156
Precious metals (million troy ounces)	1	1

Gross fair value of outstanding derivatives

The following table presents the gross fair value of Occidental’s outstanding derivatives as of June 30, 2011 and December 31, 2010 (in millions):

	Asset Derivatives				Liability Derivatives
June 30, 2011	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Marketing and trading assets and other	$	29		Accrued liabilities	$	113
		29				113
Derivatives not designated as hedging instruments (a)
Commodity contracts	Marketing and trading assets and other	999			Accrued liabilities	968
	Long-term receivables and other assets, net	61			Deferred credits and other liabilities	60
		1,060				1,028
Total gross fair value		1,089				1,141
Less: counterparty netting and cash collateral (b)		(801		)		(830		)
Total net fair value of derivatives		$	288			$	311

	Asset Derivatives				Liability Derivatives
December 31, 2010	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Marketing and trading assets and other	$	51		Accrued liabilities	$	209
	Long-term receivables and other assets, net	9			Deferred credits and other liabilities	—
		60				209
Derivatives not designated as hedging instruments (a)
Commodity contracts	Marketing and trading assets and other	829			Accrued liabilities	823
	Long-term receivables and other assets, net	86			Deferred credits and other liabilities	85
		915				908
Total gross fair value		975				1,117
Less: counterparty netting and cash collateral (c)		(680		)		(736		)
Total net fair value of derivatives		$	295			$	381

(a)   The above fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and qualify for net presentation in the consolidated balance sheet.

(b)   As of June 30, 2011, collateral received of $45 million has been netted against derivative assets and collateral paid of $74 million has been netted against derivative liabilities.

(c)   As of December 31, 2010, collateral received of $39 million has been netted against derivative assets and collateral paid of $95 million has been netted against derivative liabilities.