Murphy Oil (MUR) 10-K 2006 FY Annual report

EXHIBIT 12.1

MURPHY OIL CORPORATION AND CONSOLIDATED SUBSIDIARIES

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES (UNAUDITED)

(THOUSANDS OF DOLLARS)

	Years Ended December 31,
	2006			2005		2004		2003		2002
Income from continuing operations before income taxes	$	1,028,425		1,372,059		804,936		374,205		121,566
Distributions (less than) greater than equity in earnings of affiliates		(4,065	)	(5,514	)	(4,225	)	(209	)	(3	)
Previously capitalized interest charged to earnings during period		11,741		15,564		14,065		10,457		7,748
Interest and expense on indebtedness		9,476		8,765		34,064		20,511		26,968
Interest portion of rentals*		14,021		9,397		7,908		9,857		9,445
Earnings before provision for taxes and fixed charges	$	1,059,598		1,400,271		856,748		414,821		165,724
Interest and expense on indebtedness, excluding capitalized interest	$	9,476		8,765		34,064		20,511		26,968
Capitalized interest		43,073		38,539		22,160		37,240		24,536
Interest portion of rentals*		14,021		9,397		7,908		9,857		9,445
Total fixed charges	$	66,570		56,701		64,132		67,608		60,949
Ratio of earnings to fixed charges		15.9		24.7		13.4		6.1		2.7

*Calculated as one-third of rentals, which is considered a reasonable approximation of interest factor.

Ex. 12-1