Derivatives (Tables)

6 Months Ended

Jun. 30, 2012

Derivatives

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

	Periods ended June 30
	Three Months					Six Months
Commodity Contracts — cash-flow hedges	2012			2011		2012			2011
Unrealized gains (losses) recognized in AOCI	$	(2	)	$	34	$	20		$	(6	)
Losses (gains) reclassified into income	$	6		$	54	$	(39	)	$	76
Gains recognized in income — ineffective portion	$	—		$	1	$	—		$	—

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

	Periods ended June 30
	Three Months						Six Months
	2012			2011			2012			2011
Beginning balance — AOCI	$	(13	)	$	(122	)	$	1		$	(111	)
Unrealized gains (losses) recognized in AOCI	(2		)	21			12			(4		)
Losses (gains) reclassified to income	4			35			(24		)	49
Ending balance — AOCI	$	(11	)	$	(66	)	$	(11	)	$	(66	)

Gross fair value of outstanding derivatives

June 30, 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	$	4		Accrued liabilities	$	1
Derivatives not designated as hedging instruments (a)
Commodity contracts	Marketing and trading assets and other	1,369			Accrued liabilities	1,465
	Long-term receivables and other assets, net	56			Deferred credits and other liabilities	54
		1,425				1,519
Total gross fair value		1,429				1,520
Less: counterparty netting and cash collateral (b)		(1,197		)		(1,272		)
Total net fair value of derivatives		$	232			$	248

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
Total gross fair value		906			958
		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 June 30, 2012, collateral received of $66 million has been netted against derivative assets and collateral paid of $141 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)	14	9
Third-party marketing and trading activities
Purchase contracts
Oil (million barrels)	158	109
Natural gas (billion cubic feet)	342	481
Precious metals (million troy ounces)	1	4
Sales contracts
Oil (million barrels)	152	109
Natural gas (billion cubic feet)	451	723
Precious metals (million troy ounces)	—	1