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DERIVATIVES (Tables)
 12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Summary of net sales related to the outstanding commodity derivative instruments
 
 
 
 As of December 31, (in millions, except Long/(Short) volumes)
 
2018
 
2017
Unrealized gain (loss) on derivatives not designated as hedges
 
 
 
 
Oil commodity contracts
 
$
184

 
$
(47
)
Natural gas commodity contracts
 
$
5

 
$
1

 
 
 
 
 
Outstanding net volumes on derivatives not designated as hedges
 
 
 
 
Oil Commodity Contracts
 
 
 
 
Volume (MMBOE)
 
61

 
61

 
 
 
 
 
Natural gas commodity contracts
 
 
 
 
Volume (Bcf)
 
(142
)
 
(47
)
Gross and net fair values of outstanding derivatives
The following summarizes the fair value of the Company’s derivative assets and liabilities by input level within the fair-value hierarchy:
As of December 31, 2018
 
Fair Value Measurements Using
 
Netting (b)
 
Total Fair Value
(in millions)
 
Balance Sheet Location
 
Level 1
 
Level 2
 
Level 3
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments (a)
 


 


 
 
 
 
 
 
Commodity contracts
 
Other current assets
 
2,531

 
110

 
—

 
(2,392
)
 
249

 
Long-term receivables and other assets, net
 
5

 
9

 
—

 
(6
)
 
8

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Cash-flow hedges (a)
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Accrued liabilities
 
—

 
2

 
—

 
—

 
2

 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments (a)
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Accrued liabilities
 
2,357

 
101

 
—

 
(2,392
)
 
66

 
Deferred credits and liabilities
 
6

 
2

 
—

 
(6
)
 
2

(a)
Fair values are presented at gross amounts, including when the derivatives are subject to netting arrangements and presented on a net basis in the consolidated balance sheets.
(b)
These amounts do not include collateral. As of December 31, 2018, $45 million collateral received has been netted against derivative assets and collateral paid of $1 million has been netted against derivative liabilities. Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $178 million as of December 31, 2018, deposited by Occidental, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets.
As of December 31, 2017
 
Fair Value Measurements Using
 
Netting (b)
 
Total Fair Value
(in millions)
 
Balance Sheet Location
 
Level 1
 
Level 2
 
Level 3
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash-flow hedges (a)
 
 
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Other current assets
 
—

 
3

 
—

 
—

 
3

 
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments (a)
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Other current assets
 
485

 
227

 
—

 
(517
)
 
195

 
Long-term receivables and other assets, net
 
1

 
2

 
—

 
(1
)
 
2

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Derivatives not designated as hedging instruments (a)
 
 
 
 
 
 
 
 
 
 
Commodity contracts
 
Accrued liabilities
 
535

 
222

 
—

 
(517
)
 
240

 
Deferred credits and liabilities
 
1

 
3

 
—

 
(1
)
 
3

(a)
Fair values are presented at gross amounts, including when the derivatives are subject to netting arrangements and presented on a net basis in the consolidated balance sheets.
(b)
These amounts do not include collateral. As of December 31, 2017, no collateral received has been netted against derivative assets and collateral paid of $54 million has been netted against derivative liabilities. Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $70 million as of December 31, 2017, deposited by Occidental, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets.