Occidental Petroleum 2002 Annual Report Download - page 4

2002 2001 2000
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OIL (b) GAS TOTAL (c) Oil (b) Gas Total (c) Oil (b) Gas Total (c)
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U.S. Reserves 1,452 1,821 1,755 1,371 1,962 1,698 1,346 2,094 1,695
International Reserves 518 228 556 526 106 543 457 116 476
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Total 1,970 2,049 2,311(a) 1,897 2,068 2,241(a) 1,803 2,210 2,171(a)
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U.S. Production 85 206 119 78 223 115 63 241 104
International Production 65 23 69 55 18 59 62 18 65
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Total 150 229 188 133 241 174 125 259 169
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(a) Stated on a net basis and after applicable royalties. Includes reserves
related to production-sharing contracts, other economic arrangements and
Occidental's share of reserves from equity investees. Proved reserves from
production-sharing contracts in the Middle East and Other Eastern
Hemisphere and from other economic arrangements in the U.S. were 324
million barrels of oil equivalent (MMBOE) and 94 MMBOE in 2002, 321 MMBOE
and 99 MMBOE in 2001 and 258 MMBOE and 87 MMBOE in 2000, respectively.
(b) Includes natural gas liquids and condensate.
(c) 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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COMPETITION
As a producer of crude oil and natural gas, Occidental competes with
numerous other producers. Crude oil and natural gas are commodities that are
sensitive to prevailing conditions of supply and demand and are sold at "spot",
contract prices or on futures markets. Occidental competes by developing and
producing its worldwide oil and gas reserves cost-effectively and acquiring
contracts to explore in areas with known oil and gas deposits. Occidental also
competes by increasing production through enhanced oil recovery projects and
making strategic acquisitions. Occidental focuses in its core areas of the
United States, the Middle East and Latin America.
CHEMICAL OPERATIONS
GENERAL
Occidental manufactures and markets basic chemicals, vinyls and performance
chemicals directly and through various affiliates (collectively, OxyChem).
OxyChem's operations are affected by cyclical economic factors and by specific
chemical-industry conditions. For additional information regarding Occidental's
chemical segment, see the information under the caption "Business Review -
Chemical" in the MD&A section of this report.
PRODUCTS AND PROPERTIES
OxyChem, which is headquartered in Dallas, Texas, operates chemical
manufacturing plants at 26 sites in the United States. Many of the larger
facilities are located in the Gulf Coast region of Texas and Louisiana. In
addition, OxyChem operates two chemical-manufacturing plants in Canada, and one
in Chile. All of OxyChem's manufacturing plants are owned, except for a portion
of the LaPorte, Texas vinyl chloride monomer (VCM) plant, which is leased. A
number of additional facilities process, blend and store products. OxyChem owns
and leases an extensive fleet of railcars.
BASIC CHEMICALS
OxyChem's basic chemicals primarily consist of chlorine, caustic soda,
potassium chemicals and their derivatives.
Chlorine is used for chemical manufacturing in the chlorovinyl chain and
for water treatment. OxyChem produces chlorine in Alabama, Delaware, Louisiana,
New York, Texas, Brazil and Chile. Estimated annual capacity, including one