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We also expect marketing margins to be weaker in the first quarter because of the effect on demand of the generally mild weather.
They do not, in fact, and they are not; thanks respectively to fruit genetics and marketing margins.
ConocoPhillips announced last week that its refining and marketing margins for the fourth quarter might be down as much as 25 percent.
Marketing margins in the USA showed some signs of recovery but are still lower than they were in the late 1980s.
Higher refining and marketing margins, lower general expenses and and lower exploration costs somewhat mitigated the effect of those factors, he said.
C. J. Silas, the chairman and chief executive, said, "Chemicals operations produced excellent results, while refining and marketing margins remained strong."
The latest results reflected declines in natural gas prices and West Coast refining and marketing margins and a rise in exploration costs.
Fred L. Hartley, Unocal's chairman, said higher crude-oil prices throughout last year were largely offset by lower refining and marketing margins.
BP Amoco's marketing margins have been squeezed, as the company has been unable to pass on the higher cost of fuel to customers at its retail gas stations.
"They reflect the combination of several short-term events, including very low West Coast refining and marketing margins, higher exploration and dry-hole expenses, and lower domestic natural gas prices."
The Unocal Corporation said its second-quarter profits would be substantially lower than last year because of lower West Coast refining and marketing margins, depressed domestic natural gas prices and soft prices for crude oil in California and Alaska.