EXHIBIT 12.3 UNION OIL COMPANY OF CALIFORNIA AND CONSOLIDATED SUBSIDIARIES COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For Six Months Ended June 30 --------------------------- Millions of dollars 1997 1996 - ----------------------------------------------------------------------------------------------------------------------------------- Earnings from continuing operations .................................................. $362 $320 Provision for income taxes ........................................................... 242 226 --------------------------- Earnings subtotal .............................................................. 604 546 Fixed charges included in earnings: Interest expense .................................................................. 110 147 Interest portion of rentals ....................................................... 14 21 --------------------------- Fixed charges subtotal ......................................................... 124 168 Earnings from continuing operations available before fixed charges .................................................... $728 $714 --------------------------- Fixed charges: Fixed charges included in earnings ................................................ $124 $168 Capitalized interest .............................................................. 16 6 --------------------------- Total fixed charges ............................................................ $140 $174 --------------------------- Ratio of earnings from continuing operations to fixed charges ................................................................. 5.2 4.1