In just a moment, I'll turn the call over to our CFO, Jim Lienert, who will review our financial and operating results for this year's second quarter. Steve Chazen will then follow with comments on our performance and update on our capital program and production for 2012 and including our outlook for the second half of this year.Our second quarter 2012 earnings press release, investor relations supplemental schedules and conference call presentation slides, which refer to both Jim's and Steve's remarks, can be downloaded off of our website at www.oxy.com. I'll now turn the call over to Jim Lienert. Jim, please go ahead. James M. Lienert Thank you, Chris. Net income was $1.3 billion or $1.64 per diluted share in the second quarter of 2012 compared to $1.8 billion or $2.23 per diluted share in the second quarter of 2011 and $1.6 billion or $1.92 per diluted share in the first quarter of 2012. All the drop in the second quarter earnings compared to the first quarter of 2012 was attributable to the decline in commodity prices. Worldwide oil and domestic gas and NGL prices were significantly lower during the quarter. Here's a segment breakdown for the second quarter. Oil and gas segment earnings for the second quarter of 2012 were $2 billion compared with $2.5 million in the first quarter of 2012 and $2.6 billion in the second quarter of 2011. In the oil and gas segment, the second quarter 2012 daily production was 766,000 barrels, the highest volume in the company's history for the second consecutive quarter and was up 7% from the same period of 2011. Our total domestic production was 462,000 barrels per day, the seventh consecutive domestic quarterly volume record for the company. Our total domestic production was 9% higher than the second quarter of 2011. Latin America volumes were 33,000 barrels per day. Colombia's production of 31,000 barrels a day improved 7,000 barrels a day from the first quarter of 2012 due to significantly lower levels of insurgent activity in the second quarter. In the Middle East region, volumes were 271,000 barrels per day. In Oman, the second quarter production was 72,000 barrels per day, 2,000 barrels lower than the first quarter volumes. In Qatar, the second quarter production was 74,000 barrels per day, 2,000 barrels higher than the first quarter volumes. For Dolphin and Bahrain combined, daily production increased 7,000 barrels from the first quarter, which included planned plant shutdowns in Dolphin. The rest of the Middle East/North Africa production decreased by 10,000 barrels per day.
Oil prices and production sharing and similar contract factors did not significantly impact this quarter's production volumes compared to the previous quarter or the second quarter of 2011. Our second quarter sales volumes were 759,000 barrels per day, slightly lower than our production volumes due to the timing of liftings in the Middle East/North Africa. Second quarter 2012 realized prices were lower for our products compared to the first quarter of the year. Our worldwide crude oil realized price was $99.34 per barrel, a decrease of about 8%. Worldwide NGLs were $42.06 per barrel, a decrease of about 20%. And domestic natural gas prices were $2.09 per MCF, a decline of 26%.Second quarter 2012 realized prices were also lower than the second quarter 2011 prices for all our products. On a year-over-year basis, price decreases were 4% for the worldwide crude oil, 27% for worldwide NGLs and 51% for domestic natural gas. Realized oil prices for the quarter represented 106% of the average WTI and 91% of the average Brent price. Realized NGL prices were 45% of WTI, and realized domestic gas prices were 92% of the average NYMEX price. Price changes at current global prices affect our quarterly earnings before income taxes by $38 million for $1 per barrel change in oil prices and $8 million for $1 per barrel change in NGL prices. A swing of $0.50 per million BTUs in domestic gas prices affects quarterly pretax earnings by about $35 million. These price change sensitivities include the impact of production sharing contract volume changes on income. Read the rest of this transcript for free on seekingalpha.com