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Part I
ITEMS 1 AND 2 BUSINESS AND PROPERTIES
In this report, "Occidental" refers to Occidental Petroleum Corporation, a Delaware corporation (OPC), and/or one or more entities in
which it owns a majority voting interest (subsidiaries). Occidental conducts its operations through various oil and gas, chemical, midstream,
marketing and other subsidiaries and affiliates. Occidental’s executive offices are located at 10889 Wilshire Boulevard, Los Angeles,
California 90024; telephone (310) 208-8800.
GENERAL
Occidental’s principal businesses consist of three segments. The oil and gas segment explores for, develops, produces and markets
crude oil, natural gas liquids (NGLs), condensate and natural gas. The chemical segment (OxyChem) manufactures and markets basic
chemicals, vinyls and performance chemicals. The midstream, marketing and other segment (midstream and marketing) gathers, treats,
processes, transports, stores, trades and markets crude oil, natural gas, NGLs, condensate and carbon dioxide (CO 2) and generates and
markets power. Unless otherwise indicated hereafter, discussion of oil or oil and liquids refers to crude oil, NGLs and condensate.
Occidental changed its alignment of operating segments at the beginning of 2008. In previous years, oil and gas and a portion of the
midstream and marketing operations were reported as a single oil and gas segment and some of the corporate-directed midstream and
marketing operations were reported under corporate and other. In the past two years, the Dolphin Project (Dolphin) pipeline began
transporting natural gas to the United Arab Emirates (UAE) and Occidental acquired a common carrier pipeline system in the Permian
Basin, various gas processing plants and the remaining ownership interest in a cogeneration facility. The addition of these operations to the
existing midstream and marketing infrastructure caused management to realign its operating segments to increase its focus on these
operations. All segment information for prior periods has been revised to retrospectively reflect the current segment reporting structure. The
change to segment reporting had no effect on Occidental's reported consolidated earnings. Each of the reportable segments represents
separate and distinct operations, is managed and receives resource allocation as a separate business unit and has its performance separately
evaluated. For financial information by segment and by geographic area, see Note 16 to the Consolidated Financial Statements of Occidental
(Consolidated Financial Statements).
For information regarding Occidental's current developments, see the information in the "Management’s Discussion and Analysis of
Financial Condition and Results of Operations" (MD&A) section of this report.
OIL AND GAS OPERATIONS
General
Occidental’s domestic oil and gas operations are located in Texas, New Mexico, California, Kansas, Oklahoma, Utah and Colorado.
International operations are located in Argentina, Bolivia, Colombia, Libya, Oman, Qatar, the UAE and Yemen. For additional information
regarding Occidental's oil and gas segment, see the information under the caption "Oil and Gas Segment" in the MD&A section of this
report.
Proved Reserves and Sales Volumes
The table below shows Occidental’s total oil and natural gas proved reserves and sales volumes in 2008, 2007 and 2006. See
"MD&A — Oil and Gas Segment," Note 17 to the Consolidated Financial Statements and the information under the caption "Supplemental
Oil and Gas Information" for certain details regarding Occidental’s oil and gas proved reserves, the estimation process and sales volumes by
country. On May 1, 2008, Occidental reported to the United States Department of Energy on Form EIA-28 proved oil and gas reserves at
December 31, 2007. The amounts reported were the same as those reported in Occidental’s 2007 Annual Report.
Comparative Oil and Gas Proved Reserves and Sales Volumes
Oil in millions of barrels; natural gas in billions of cubic feet; BOE in millions of barrels of oil equivalent
2008 2007 2006
PROVED RESERVES Oil (a) Gas BOE (b) Oil (a) Gas BOE (b) Oil (a) Gas BOE (b)
United States 1,547 3,153 2,073 1,707 2,672 2,152 1,660 2,424 2,064
International 664 1,448 905 519 1,171 714 553 1,300 769
Consolidated Subsidiaries (c) 2,211 4,601 2,978(d) 2,226 3,843 2,866(d) 2,213 3,724 2,833(d)
SALES VOLUMES
United States 96 215 132 95 216 131 94 214 130
International 74 92 89 70 45 78 66 23 70
Consolidated Subsidiaries (c) 170 307 221 165 261 209 160 237 200
(a) Includes NGLs and condensate.
(b) Natural gas volumes have been converted to barrels of oil equivalent (BOE) based on energy content of six thousand cubic feet (Mcf) of
gas to one barrel of oil.
(c) Occidental has classified its Pakistan (in 2007), Horn Mountain (in 2007) and Ecuador (in 2006) operations as discontinued operations
on a retrospective application basis and excluded them from this table.
(d) Stated on a net basis after applicable royalties. Includes proved reserves related to production-sharing contracts (PSCs) and other similar
economic arrangements of 826 million BOE (MMBOE) in 2008, 603 MMBOE in 2007 and 657 MMBOE in 2006.
3
Competition and Sales and Marketing