Exhibit 99(b)



                      FORM 11-K


                    UNITED STATES
          SECURITIES AND EXCHANGE COMMISSION
                Washington, D.C. 20549


(Mark One)

[X]   ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934


For the year ended       December 31, 2000
                   -------------------------------------

                          OR

[ ]   TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
      SECURITIES EXCHANGE ACT OF 1934


For the transition period from            to
                               ----------    -----------

Commission file number       33-50283
                       ---------------------------------




           LONG-TERM STOCK SAVINGS PLAN OF
              PHILLIPS PETROLEUM COMPANY
               (Full title of the Plan)




              PHILLIPS PETROLEUM COMPANY
            (Name of issuer of securities)




        Bartlesville, Oklahoma                  74004
(Address of principal executive office)      (Zip code)


<PAGE>



FINANCIAL STATEMENTS AND EXHIBITS

(a)  Financial Statements
     --------------------

Financial statements of the Long-Term Stock Savings Plan of
Phillips Petroleum Company, filed as part of this annual report,
are listed in the accompanying index.

(b)  Exhibits
     --------

Exhibit 1  Consent of Ernst & Young LLP.


                           SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of
1934, the Long-Term Stock Savings Plan Committee has duly caused
this annual report to be signed on its behalf by the undersigned
hereunto duly authorized.


                                 LONG-TERM STOCK SAVINGS PLAN
                                 OF PHILLIPS PETROLEUM COMPANY



                                     /s/ Rand C. Berney
                                 -----------------------------
                                         Rand C. Berney
                                             Member
                                    Long-Term Stock Savings
                                         Plan Committee

June 22, 2001


                                1
<PAGE>



-----------------------------------------------------------------
Index To Financial Statements        Long-Term Stock Savings Plan
And Schedules                       Of Phillips Petroleum Company


                                                             Page

Report of Independent Auditors .............................    3


Financial Statements

  Statement of Net Assets Available for Benefits
    at December 31, 2000 and 1999 ..........................    4

  Statement of Changes in Net Assets Available for
    Benefits for the Year Ended December 31, 2000 ..........    5

  Notes to Financial Statements ............................    6


Supplemental Schedules

  Schedule of Assets (Held at End of Year) as of
    December 31, 2000, Schedule H, Line 4i .................   11

  Schedule of Reportable Transactions for the Year Ended
    December 31, 2000, Schedule H, Line 4j .................   12

  Schedule of Nonexempt Transactions for the Year Ended
    December 31, 2000, Schedule G, Part III ................   13


                                2
<PAGE>



-----------------------------------------------------------------
Report Of Independent Auditors


The Long-Term Stock Savings Plan Committee
Long-Term Stock Savings Plan of Phillips Petroleum Company

We have audited the accompanying statements of net assets
available for benefits of the Long-Term Stock Savings Plan of
Phillips Petroleum Company (Plan) as of December 31, 2000 and
1999, and the related statement of changes in net assets
available for benefits for the year ended December 31, 2000.
These financial statements are the responsibility of the Long-
Term Stock Savings Plan Committee (Committee).  Our
responsibility is to express an opinion on these financial
statements based on our audits.

We conducted our audits in accordance with auditing standards
generally accepted in the United States.  Those standards require
that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement.  An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes assessing the accounting
principles used and significant estimates made by the Committee,
as well as evaluating the overall financial statement
presentation.  We believe that our audits provide a reasonable
basis for our opinion.

In our opinion, the financial statements referred to above
present fairly, in all material respects, the net assets
available for benefits of the Plan at December 31, 2000 and 1999,
and the changes in its net assets available for benefits for the
year ended December 31, 2000, in conformity with accounting
principles generally accepted in the United States.

Our audits were performed for the purpose of forming an opinion
on the financial statements taken as a whole.  The accompanying
supplemental schedules of assets (held at end of year) as of
December 31, 2000, reportable transactions for the year then
ended, and nonexempt transactions for the year then ended, are
presented for purposes of additional analysis and are not a
required part of the financial statements but are supplementary
information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee
Retirement Income Security Act of 1974.  These supplemental
schedules are the responsibility of the Committee.  The
supplemental schedules have been subjected to the auditing
procedures applied in our audits of the financial statements and,
in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.


                                 /s/ Ernst & Young LLP

                                     ERNST & YOUNG LLP
Tulsa Oklahoma
June 22, 2001


                                3
<PAGE>



-----------------------------------------------------------------
Statement Of Net Assets              Long-Term Stock Savings Plan
Available For Benefits              Of Phillips Petroleum Company


                                           Thousands of Dollars
                                         ------------------------
                                               2000          1999
At December 31                           ------------------------

Assets
Investments
  Common stock                           $1,444,783     1,297,487
  Money market fund                             588           837
-----------------------------------------------------------------
                                          1,445,371     1,298,324
Company Contributions Receivable
  Before-tax deposits                            29            35
Interest Receivable                              13            15
-----------------------------------------------------------------
Total Assets                              1,445,413     1,298,374
-----------------------------------------------------------------

Liabilities
Securities Acquisition Loans                348,850       377,850
Interest Payable                              1,858         1,806
Administrative Expenses Payable                 110           107
-----------------------------------------------------------------
Total Liabilities                           350,818       379,763
-----------------------------------------------------------------

Net Assets Available for Benefits        $1,094,595       918,611
=================================================================
See Notes to Financial Statements.


                                4
<PAGE>



-----------------------------------------------------------------
Statement Of Changes In Net          Long-Term Stock Savings Plan
Assets Available For Benefits       Of Phillips Petroleum Company


                                                        Thousands
                                                       of Dollars
Year Ended December 31, 2000                           ----------

Additions
Company Contributions
  Funds for debt service                               $   22,816
  Basic allocation requirements                            25,576
  Before-tax deposits                                       5,932
-----------------------------------------------------------------
                                                           54,324
-----------------------------------------------------------------
Investment Income
  Dividends                                                35,983
  Interest                                                    136
  Net appreciation in fair value
    of common stock                                       263,017
-----------------------------------------------------------------
                                                          299,136
-----------------------------------------------------------------
Total                                                     353,460
-----------------------------------------------------------------

Deductions
Distributions to Participants
  or Their Beneficiaries                                  151,776
Interest Expense                                           25,644
Administrative Expense                                         56
-----------------------------------------------------------------
Total                                                     177,476
-----------------------------------------------------------------

Net Change                                                175,984

Net Assets Available for Benefits
Beginning of Year                                         918,611
-----------------------------------------------------------------

End of Year                                            $1,094,595
=================================================================
See Notes to Financial Statements.


                                5
<PAGE>



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Notes To Financial Statements        Long-Term Stock Savings Plan
                                    Of Phillips Petroleum Company

Note 1--Plan Description

The following description of the Long-Term Stock Savings Plan of
Phillips Petroleum Company (Plan) is subject to and qualified by
the more complete information appearing in the Plan document.

The Plan became effective July 1, 1988, and is a defined
contribution stock bonus plan available to certain employees of
Phillips Petroleum Company and participating subsidiaries
(Company).  Generally, any person on the U.S. direct dollar
payroll of the Company is eligible to participate, except
non-managerial retail marketing outlet employees and certain
other employee classifications.

Vanguard Fiduciary Trust Company, P.O. Box 2900, Valley Forge,
Pennsylvania 19482-2900, is the Plan Trustee.  Plan investments
are held by the Trustee in the Temporary Fund, Fund K (also known
as the Employee Stock Fund), Fund L (also known as the Employer
Stock Fund) and Fund EP (also known as the EP Stock Fund).
Temporary Fund investments consist of specified short-term
securities in the Vanguard Prime Money Market Fund.  Funds K, L
and EP are invested primarily in the common stock of Phillips
Petroleum Company (Phillips Stock).

Fund L consists of Phillips Stock, purchased with the proceeds of
the loans described in Note 3 (Leveraged Shares), with certain
Company contributions, or with certain dividends received from
the Company.  The Leveraged Shares are allocated to Fund L or
Fund EP accounts of eligible participants in one of three types
of stock allocations:  semiannual basic allocations, dividend
replacement allocations and supplemental allocations.  A basic
allocation of 477,876 shares is made as of June 30 and
December 31 each year, through 2005.  In December 1995, the
Company extended the Plan to the year 2015.  Without the
extension, allocations of stock to employees would have been
completed in 2005 or before.  The new extension requires
additional shares of Phillips Stock to be delivered to the Plan.
After 2005 and through the allocation date following the date the
second loan is repaid, the number of shares to be allocated
semiannually on each basic allocation date will be 3,877 shares
for each 100 employees eligible to make deposits as of the
preceding allocation date.

The Plan is eligible to receive shares from the Company's
Compensation and Benefits Trust (CBT).  In 2000, the Company
utilized the CBT to contribute 501,685 shares of Phillips Stock
to the Plan.  The fair value of the shares was $26 million.


                                6
<PAGE>



A participant's semiannual basic allocation is based on the ratio
of the participant's Fund K before-tax deposits to all eligible
participants' before-tax deposits for the allocation period.  If
the Company does not elect to make a special contribution and if
eligible dividends from participants' Fund L or Fund EP accounts
are used to make loan payments, participants will receive a
dividend replacement allocation.  The Plan used $17.8 million in
dividends on allocated shares to make loan payments and allocated
345,133 shares in dividend replacement allocations to
participants' Fund L and Fund EP accounts in 2000.  A
supplemental allocation is made each year end if all shares
released for allocation, based on loan payment provisions, have
not been allocated.  No supplemental allocation was required in
2000.

The Company makes contributions to the Plan which, when
aggregated with certain Plan dividends from Fund L, certain
dividends from Fund EP and certain interest earnings from Fund L,
equal the amount necessary to enable the Plan to make its
regularly scheduled payments of principal and interest due on its
loans.  The Company may also elect to make contributions to the
Plan, as an alternative to utilizing the dividends from shares in
Fund EP or from shares in Fund L.  Finally, the Company may make
contributions to the Plan in the amount necessary to bring the
number of shares of stock released for allocation up to the level
required to complete the basic allocation by contributing cash or
by contributing Phillips Stock.

Eligible employees may elect to have their salaries reduced and
before-tax deposits made by the Company on their behalf equal to
1 percent of pay.  These deposits are first placed into the
Temporary Fund and remain there until the valuation date on or
about the 20th day of the following month when they are
transferred into the employee's Fund K account.  Interest earned
on deposits while in the Temporary Fund is credited monthly to
each participant who still maintains an account in the Plan and
who made deposits during the month.  Effective May 1, 2001, the
Temporary Fund was eliminated, and the before-tax deposits began
being credited directly to employees' Fund K accounts as soon as
practicable, generally the night of each payday.  The interest of
participants in each fund is represented by units allocated to
them.

Assets of the Employee Stock Ownership Plan of Phillips Petroleum
Company (ESOP) and the Payroll Stock Ownership Plan of Phillips
Petroleum Company (PAYSOP), which were merged into the Plan on
July 1, 1988, are held in Fund EP.


                                7
<PAGE>



Participants are always vested in their deposits and amounts
credited to their accounts.  Total withdrawals from Funds K, L
and EP may be made upon the occurrence of specified events,
including the attainment of age 59 1/2 (after December 31, 1998,
for Funds EP and L) or separation from service.  Partial
withdrawals are permitted in cases of specified financial
hardship and certain other cases.  For a participant who retires
or becomes totally disabled, unless a request for withdrawal is
made as of any earlier date, distribution generally will be
deferred to a date not later than the first valuation date in
October of the year age 69 is attained.  If the participant dies,
distribution to a surviving spouse beneficiary will be deferred
to the first valuation date in October in the year in which the
participant would have attained age 69.  This deferral is
revocable by the participant or the surviving spouse.
Distributions to non-spouse beneficiaries may be deferred
approximately five years.  A participant may elect a direct
rollover of the taxable portion of most distributions to an
Individual Retirement Account or another tax-qualified plan.

The Plan is administered by the Long-Term Stock Savings Plan
Committee, the members of which are appointed by the Board of
Directors of Phillips Petroleum Company (Phillips).  Members of
the Committee serve without compensation, but are reimbursed by
the Company for necessary expenditures incurred in the discharge
of their duties.  Administrative expenses of the Plan are paid by
the Trustee from assets of the Plan to the extent allowable by
law, unless paid by the Company.  In 2000, reimbursement of
administrative expenses for plan year 1998 was paid to Phillips
from Fund EP totaling $53,444.  Plan administrative expenses of
approximately $120,000 were paid by Phillips to the Trustee in
2000.


Note 2--Use of Estimates

The preparation of financial statements in conformity with
accounting principles generally accepted in the United States
requires estimates and assumptions that affect the amounts
reported in the financial statements and accompanying notes and
schedules.  Actual results could differ from those estimates.


Note 3--Securities Acquisition Loans

The Plan borrowed $250 million (Loan 1) and $400 million (Loan 2)
in 1988 and 1990, respectively, and purchased 14,336,918 and
14,159,292 shares of common stock from Phillips, respectively.
The shares are held in a Fund L suspense account until allocated
to eligible participants based on the provisions of the Plan.  At


                                8
<PAGE>



December 31, 2000 and 1999, the market value of unallocated
shares was $530 million and $475 million, respectively.  The
amount of total assets that was not allocated to participants at
December 31, 2000 and 1999, was $530 million and $476 million,
respectively.

Loan 1
Loan 1 was fully repaid in June 1998 and all leveraged shares
associated with Loan 1 have been allocated to participant
accounts.

Loan 2
Loan 2 was amended late in 1995 to extend its term from 15 to
25 years, requiring repayment in annual installments beginning in
2005, through the year 2015.  Due to loan prepayments, the first
required payment is currently scheduled to be in 2006.

Any participating bank in the syndicate of lenders may cease to
participate on December 5, 2004, by giving not less than 180 days
prior notice to the Plan and Phillips.  Also, each bank
participating in the loan has the optional right, if the current
directors of Phillips or their approved successors cease to be a
majority of the Board of Directors, and upon not less than
90 days notice, to cease to participate in the loan.  Under the
above conditions, such banks' rights and obligations under the
loan agreement must be purchased by Phillips if not transferred
to another bank of Phillips' choice.

The outstanding balance of Loan 2 at December 31, 2000, was
$349 million.  Loan 2 prepayments totaled $29 million in 2000.
An additional prepayment of $10 million was made in June 2001.
Loan 2 provides for variable interest rates.  The rates were
7.1 percent and 6.375 percent at December 31, 2000 and 1999,
respectively.

Loan 2 is guaranteed by Phillips.  It is being repaid through
contributions made by the Company, dividends on certain allocated
and unallocated shares, and earnings on the short-term investment
of dividends.  Loan 2's carrying amount approximates fair value.


Note 4--Investments

Phillips Stock is valued at fair value, using the New York Stock
Exchange closing quoted market price.  Money market funds are
valued at cost, which approximates fair market value.


                                9
<PAGE>



Note 5--Tax Status

The Internal Revenue Service (IRS) determined on January 16,
1996, that the Plan is qualified under Section 401(a) of the
Internal Revenue Code of 1986 and the Trust is exempt from
federal income tax under Section 501(a).  Subsequent amendments
have been adopted, but are not expected to affect the qualified
status of the Plan.  The Committee is not aware of any activity
that would affect the qualified status of the Plan.


Note 6--Subsequent Event

On January 1, 2001, former Phillips Petroleum Company employees,
who became Chevron Phillips Chemical Company employees effective
January 1, 2001, became eligible to withdraw the funds in their
Plan accounts, excluding before-tax deposits and the earnings on
those deposits, as long as they remain employees of Chevron
Phillips Chemical Company.  As a result, total Plan distributions
in 2001 are expected to be higher than historical averages.



                                10
<PAGE>



--------------------------------------------------------------------------------
Schedule of Assets (Held at End of Year)         Long-Term Stock Savings Plan Of
Schedule H, Line 4i                                   Phillips Petroleum Company
                                                        EIN 73-0400345, Plan 022


At December 31, 2000

(a, b) Identity of   (c) Description of investment      Thousands of Dollars
issue, borrower,     including maturity date,        ---------------------------
lessor, or similar   rate of interest, collateral,   (d) Historical  (e) Current
party                par or maturity value                     Cost        Value
------------------   ------------------------------  ---------------------------

Phillips Petroleum   25,402,782 shares of common
  Company*             stock, $1.25 par value              $678,459    1,444,783

Vanguard Fiduciary   587,896 units of participation
  Trust Company*       in the Vanguard Prime Money
                       Market Fund, $1.00 par value             588          588
--------------------------------------------------------------------------------
                                                           $679,047    1,445,371
================================================================================
*Party-in-interest




                                11
<PAGE>



-----------------------------------------------------------------
Schedule of Reportable Transactions       Long-Term Stock Savings
Schedule H, Line 4j                              Plan of Phillips
Series of Transactions in Excess                Petroleum Company
  of 5 Percent of Net Assets             EIN 73-0400345, Plan 022


Year Ended December 31, 2000


                                   Thousands of Dollars
                        -----------------------------------------
(a, b) Identity of
party involved and      (c) Value of    (d) Value    (i) Net gain
description of asset       purchases*    of sales*       or (loss)
--------------------    ------------    ---------    ------------

Vanguard Fiduciary
  Trust Company,**
  Vanguard Prime
  Money Market Fund          $65,986       66,235               -
-----------------------------------------------------------------
 *This is also the cost of purchases and current value of sales
  at time of transaction.
**Party-in-interest


Columns (e) and (f) are not applicable.




                                12
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------------------------------------------------------------------
Schedule of Nonexempt Transactions         Long-Term Stock Savings
Schedule G, Part III                              Plan of Phillips
                                                 Petroleum Company
                                          EIN 73-0400345, Plan 022


Year Ended December 31, 2000

                                                     (c)
                                               Description of
                             (b)           transactions, including
        (a)         Relationship to plan,  maturity date, rate of
    Identity of       employer or other     interest, collateral,
  party involved      party-in-interest     par or maturity value
------------------  ---------------------  -----------------------

Phillips Petroleum  Employer/Plan Sponsor  Contributions of
  Company                                  $34,175 for the
                                           September 1997 payroll
                                           period were deposited
                                           on May 15, 2001.  The
                                           estimated investment
                                           earnings of $7,480 are
                                           expected to be
                                           deposited into
                                           participant accounts in
                                           July 2001.


Columns (d) through (j) are not applicable.


                                13
<PAGE>



                                                      Exhibit 1




                CONSENT OF INDEPENDENT AUDITORS

We consent to the incorporation by reference in the Registration
Statement (Form S-8, File No. 33-50283) pertaining to the Long-
Term Stock Savings Plan of Phillips Petroleum Company and in the
related Prospectus of our report dated June 22, 2001, with
respect to the financial statements and schedules of the Long-
Term Stock Savings Plan of Phillips Petroleum Company included in
this Annual Report (Form 11-K) for the year ended December 31,
2000.


                                 /s/ Ernst & Young LLP

                                     ERNST & YOUNG LLP

Tulsa, Oklahoma
June 22, 2001


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