Price Risk Management Activities (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Risk management activities by type of risk

As of September 30, 2014, we had the following outstanding commodity derivative instruments that were entered into for trading purposes. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes represent thousands of barrels, except those identified as natural gas contracts that are presented in billions of British thermal units).



	Notional Contract Volumes by Year of Maturity
Derivative Instrument	2014	2015
Crude oil and refined products:
Swaps – long	3,490	240
Swaps – short	3,490	240
Futures – long	142,619	38,576
Futures – short	142,872	38,307
Options – long	4,400	250
Options – short	3,400	350
Natural gas:
Futures – long	4,100	1,950
Futures – short	4,400	—
Options – long	500	—

As of September 30, 2014, we had the following outstanding commodity derivative instruments that were used as economic hedges, as well as commodity derivative instruments related to the physical purchase of corn at a fixed price. The information presents the notional volume of outstanding contracts by type of instrument and year of maturity (volumes in thousands of barrels, except those identified as corn contracts that are presented in thousands of bushels, and soybean oil contracts that are presented in thousands of pounds).



	Notional Contract Volumes by Year of Maturity
Derivative Instrument	2014	2015	2016
Crude oil and refined products:
Swaps – long	4,074	2,819	—
Swaps – short	4,000	1,630	—
Futures – long	62,038	372	—
Futures – short	72,904	1,130	—
Corn:
Futures – long	13,725	30	—
Futures – short	23,970	7,260	115
Physical contracts – long	13,893	5,429	113
Soybean oil:
Futures – long	108,240	—	—
Futures – short	241,080	15,000	—

Fair values of derivative instruments

The following tables provide information about the fair values of our derivative instruments as of September 30, 2014 and December 31, 2013 (in millions) and the line items in the balance sheets in which the fair values are reflected. See Note 13 for additional information related to the fair values of our derivative instruments.

As indicated in Note 13, we net fair value amounts recognized for multiple similar derivative contracts executed with the same counterparty under master netting arrangements, including cash collateral assets and obligations. The tables below, however, are presented on a gross asset and gross liability basis, which results in the reflection of certain assets in liability accounts and certain liabilities in asset accounts.



	Balance Sheet Location	September 30, 2014
	Balance Sheet Location	Asset Derivatives		Liability Derivatives
Derivatives not designated as hedging instruments
Commodity contracts:
Futures	Receivables, net	$	1,334	$	1,185
Swaps	Receivables, net	41		49
Swaps	Accrued expenses	1		1
Options	Receivables, net	—		1
Physical purchase contracts	Inventories	—		17
Foreign currency contracts	Receivables, net	8		—
Total		$	1,384	$	1,253



	Balance Sheet Location	December 31, 2013
	Balance Sheet Location	Asset Derivatives		Liability Derivatives
Derivatives designated as hedging instruments
Commodity contracts:
Futures	Receivables, net	$	25	$	36

Derivatives not designated as hedging instruments
Commodity contracts:
Futures	Receivables, net	$	474	$	455
Swaps	Receivables, net	33		18
Swaps	Prepaid expenses and other	3		—
Swaps	Accrued expenses	—		5
Options	Receivables, net	2		2
Physical purchase contracts	Inventories	—		5
Foreign currency contracts	Accrued expenses	—		8
Total		$	512	$	493
Total derivatives		$	537	$	529

Effect of derivative instruments on income and other comprehensive income



Trading Derivatives	Location of Gain (Loss) Recognized in Income on Derivatives	Three Months Ended September 30,				Nine Months Ended September 30,
Trading Derivatives	Location of Gain (Loss) Recognized in Income on Derivatives	2014		2013		2014		2013
Commodity contracts	Cost of sales	$	11	$	11	$	14	$	16
RINs fixed-price contracts	Cost of sales	—		—		—		(20		)
Total		$	11	$	11	$	14	$	(4	)

The following tables provide information about the gain or loss recognized in income and other comprehensive income on our derivative instruments and the line items in the financial statements in which such gains and losses are reflected (in millions).



Derivatives in Fair Value Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivatives	Three Months Ended September 30,						Nine Months Ended September 30,
Derivatives in Fair Value Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivatives	2014			2013			2014			2013
Commodity contracts:
Loss recognized in income on derivatives	Cost of sales	$	(16	)	$	(17	)	$	(42	)	$	(38	)
Gain recognized in income on hedged item	Cost of sales	17			19			42			41
Gain recognized in income on derivatives (ineffective portion)	Cost of sales	1			2			—			3



Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivatives	Three Months Ended September 30,					Nine Months Ended September 30,
Derivatives in Cash Flow Hedging Relationships	Location of Gain (Loss) Recognized in Income on Derivatives	2014			2013		2014			2013
Commodity contracts:
Gain (loss) recognized in OCI on derivatives (effective portion)		$	(5	)	$	3	$	(1	)	$	(6	)
Gain (loss) reclassified from accumulated OCI into income (effective portion)	Cost of sales	(5		)	6		(2		)	1
Gain (loss) recognized in income on derivatives (ineffective portion)	Cost of sales	—			16		(1		)	13



Derivatives Designated as Economic Hedges and Other Derivative Instruments	Location of Gain (Loss) Recognized in Income on Derivatives	Three Months Ended September 30,					Nine Months Ended September 30,
	Location of Gain (Loss) Recognized in Income on Derivatives	2014		2013			2014		2013
Commodity contracts	Cost of sales	$	354	$	(76	)	$	222	$	205
Foreign currency contracts	Cost of sales	43		(22		)	20		14
Total		$	397	$	(98	)	$	242	$	219