Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2012

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 March 31, 2012, and December 31, 2011, 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 Contract	Balance Sheet Classification	At March  31 2012			At December  31 2011
Commodity	Accounts and notes receivable, net		$	113		$	133
Commodity	Long-term receivables, net			79			75
Total Assets at Fair Value			$	192		$	208
Commodity	Accounts payable		$	44		$	36
Commodity	Deferred credits and other noncurrent obligations			84			66
Total Liabilities at Fair Value			$	128		$	102

Consolidated Statement of Income: The Effect of Derivatives Not Designated as Hedging Instruments

(Millions of dollars)

		Gain / (Loss) Three Months Ended March 31
Type of Contract	Statement of Income Classification	2012				2011
Commodity	Sales and other operating revenues		$	(118	)		$	(399	)
Commodity	Purchased crude oil and products			(19	)			4
Commodity	Other income			5				(2	)
			$	(132	)		$	(397	)