Occidental Petroleum 2001 Annual Report Download - page 3

ITEMS 1 AND 2 BUSINESS AND PROPERTIES
In this report, the term "Occidental" refers to Occidental Petroleum
Corporation, a Delaware corporation, and/or one or more entities in which it
owns a majority voting interest (subsidiaries).
GENERAL
Occidental explores for, develops, produces and markets crude oil and
natural gas. Occidental also manufactures and markets basic chemicals, including
chlorine, caustic soda and ethylene dichloride (EDC), vinyls, including
polyvinyl chloride (PVC) resins and vinyl chloride monomer (VCM), through its
76-percent interest in Oxy Vinyls, LP (OxyVinyls), and performance chemicals.
Occidental conducts its operations through various oil and gas and chemical
subsidiaries and affiliates. Occidental also has an interest in petrochemicals
through its 29.5-percent ownership in Equistar Chemicals, LP (Equistar), which
it intends to sell to Lyondell Chemical Company (Lyondell). See further
information in the "Chemical Operations" section. Occidental's executive offices
are located at 10889 Wilshire Boulevard, Los Angeles, California 90024;
telephone [phone].
During 2001, Occidental continued its program to redeploy assets in its
worldwide oil and gas and chemical segments. For information regarding these
developments, see the information under "Oil and Gas Operations", "Chemical
Operations" and "Management's Discussion and Analysis of Financial Condition and
Results of Operations" (MD&A) in this report.
For information on foreign investments, see the information under "Foreign
Investments" in the MD&A section of this report.
For information on acquisitions and dispositions, see the information under
"Acquisitions, Dispositions and Commitments" in the MD&A section of this report.
SEGMENT INFORMATION
Occidental's principal businesses constitute two industry segments, the
operations of which are described below. For information with respect to the
revenues, net income and assets of Occidental's industry segments and of its
operations in various geographic areas for each of the three years in the period
ended December 31, 2001, see Note 15 to the Consolidated Financial Statements of
Occidental (Consolidated Financial Statements), which is included in this
report, and the information appearing in the MD&A section of this report.
OIL AND GAS OPERATIONS
EXPLORATION AND PRODUCTION
GENERAL
Occidental produces or participates in the production of crude oil,
condensate and natural gas in the United States, Colombia, Ecuador, Oman,
Pakistan, Qatar, Russia and Yemen. Occidental also conducts exploration and/or
development activities in several of these countries, as well as in Albania and
Peru.
COMPARATIVE OIL AND GAS RESERVES AND PRODUCTION
Oil in millions of barrels; natural gas in billions of cubic feet
2001 2000 1999
================================ ============================ ============================ ============================
OIL GAS TOTAL(A) OIL GAS TOTAL(A) OIL GAS TOTAL(A)
-------- -------- -------- -------- -------- -------- -------- -------- --------
U.S. Reserves 1,371 1,962 1,698 1,346 2,094 1,695 464 1,806 765
International Reserves 526 106 543 457 116 476 573 86 587
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total 1,897 2,068 2,241 1,803 2,210 2,171 1,037 1,892 1,352
======== ======== ======== ======== ======== ======== ======== ======== ========
U.S. Production 78 223 115 63 241 104 27 242 67
International Production 55 18 59 62 18 65 85 19 89
-------- -------- -------- -------- -------- -------- -------- -------- --------
Total 133 241 174 125 259 169 112 261 156
================================ ======== ======== ======== ======== ======== ======== ======== ======== ========
(a) Natural gas volumes have been converted to equivalent barrels based on
energy content of 6,000 cubic feet (one thousand cubic feet is referred to
as an "Mcf") of gas to one barrel of oil.
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