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Derivative Instruments and Hedging Activities
6 Months Ended
Jun. 30, 2011
Derivative Instruments and Hedging Activities [Abstract]  
Derivative Instruments and Hedging Activities
 
Note 12.  Derivative Instruments and Hedging Activities
 
The company’s derivative instruments principally include crude oil, natural gas and refined product futures, swaps, options, and forward contracts. None of the company’s derivative instruments is designated as a hedging instrument, although certain of the company’s affiliates make such designation. The company’s derivatives are not material to the company’s financial position, results of operations or liquidity. The company believes it has no material market or credit risks to its operations, financial position or liquidity as a result of its commodities and other derivatives activities.
 
Derivative instruments measured at fair value at June 30, 2011 and December 31, 2010, and their classification on the Consolidated Balance Sheet and Consolidated Statement of Income are as follows:
 
Consolidated Balance Sheet: Fair Value of Derivatives Not Designated as Hedging Instruments
(Millions of Dollars)
 
                     
Type of
      At June 30
  At December 31
Contract   Balance Sheet Classification   2011   2010
 
Commodity
  Accounts and notes receivable, net     $   68       $   58  
Commodity
  Long-term receivables, net     57       64  
                     
Total Assets at Fair Value     $ 125       $ 122  
                 
Commodity
  Accounts payable     $   70       $ 131  
Commodity
  Deferred credits and other noncurrent obligations     32       40  
                     
Total Liabilities at Fair Value     $ 102       $ 171  
                 
 
 
Consolidated Statement of Income: The Effect of Derivatives Not Designated as Hedging Instruments
(Millions of dollars)
 
                                     
        Gain/(Loss)
    Gain/(Loss)
 
        Three Months Ended
    Six Months Ended
 
Type of
      June 30     June 30  
Contract   Statement of Income Classification   2011     2010     2011     2010  
 
Commodity
  Sales and other operating revenues   $ 75     $ 146     $ (324 )   $ 152  
Commodity
  Purchased crude oil and products     27       5       31       (26 )
Commodity
  Other income           (9 )     (2 )     (9 )
                                     
        $ 102     $ 142     $ (295 )   $ 117