Derivatives (Tables)

3 Months Ended

Mar. 31, 2012

Derivatives

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

Commodity Contracts – cash flow hedges	2012				2011
Unrealized gains (losses) recognized in AOCI		$	22			$	(40	)
(Gains) losses reclassified into income		$	(45	)		$	22
Losses recognized in income – ineffective portion		$	—			$	(1	)

Cash-flow hedges - Net after-tax derivative activity recorded in Accumulated Other Comprehensive Income

	2012				2011
Beginning balance – AOCI		$	1			$	(111	)
Unrealized gains (losses) recognized in AOCI		14				(25		)
(Gains) losses reclassified to income		(28		)		14
Ending balance – AOCI		$	(13	)		$	(122	)

Gross fair value of outstanding derivatives

March 31, 2012	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Marketing and trading assets and other	$	6		Accrued liabilities	$	6
Derivatives not designated as hedging instruments (a)
Commodity contracts	Marketing and trading assets and other	1,398			Accrued liabilities	1,443
	Long-term receivables and other assets, net	70			Deferred credits and other liabilities	71
		1,468				1,514
Total gross fair value		1,474				1,520
Less: counterparty netting and cash collateral (b)		(1,234		)		(1,331		)
Total net fair value of derivatives		$	240			$	189

December 31, 2011	Asset Derivatives Balance Sheet Location	Fair Value			Liability Derivatives Balance Sheet Location	Fair Value
Cash-flow hedges (a)
Commodity contracts	Marketing and trading assets and other	$	41		Accrued liabilities	$	5
	Long-term receivables and other assets, net	3			Deferred credits and other liabilities	—
		44				5
Derivatives not designated as hedging instruments (a)
Commodity contracts	Marketing and trading assets and other	835			Accrued liabilities	887
	Long-term receivables and other assets, net	71			Deferred credits and other liabilities	71
		906				958
Total gross fair value		950				963
Less: counterparty netting and cash collateral (c)		(758		)		(782		)
Total net fair value of derivatives		$	192			$	181

(a)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 March 31, 2012, collateral received of $42 million has been netted against derivative assets and collateral paid of $139 million has been netted against derivative liabilities.

(c)As of December 31, 2011, collateral received of $42 million has been netted against derivative assets and collateral paid of $66 million has been netted against derivative liabilities.

Derivatives Not Designated as Hedging Instruments | Commodity Contracts

Derivatives

Schedule of outstanding derivative instruments

	Volumes
Commodity	2012		2011
Sales contracts related to Occidental’s production
Oil (million barrels)		12		9
Third-party marketing and trading activities
Purchase contracts
Oil (million barrels)		252		109
Natural gas (billion cubic feet)		444		481
Precious metals (million troy ounces)		1		4
Sales contracts
Oil (million barrels)		251		109
Natural gas (billion cubic feet)		632		723
Precious metals (million troy ounces)		—		1