Financial Instruments and Derivatives (Tables)

9 Months Ended

Sep. 30, 2020

Financial Instruments And Derivatives [Abstract]

Financial Instruments

The estimated fair value of financial instruments at September 30, 2020, and December 31, 2019, and the related hierarchy level for the fair value measurement is as follows:

		At September 30, 2020
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	637	121	—	758	(571)	(80)	—	107
	Advances to/receivables
	from equity companies (2)(7)	—	3,152	6,081	9,233	—	—	(193)	9,040
	Other long-term
	financial assets (3)	1,197	—	915	2,112	—	—	130	2,242
Liabilities
	Derivative liabilities (4)	817	91	—	908	(571)	(259)	—	78
	Long-term debt (5)	49,153	149	4	49,306	—	—	(4,031)	45,275
	Long-term obligations
	to equity companies (7)	—	—	3,685	3,685	—	—	(199)	3,486
	Other long-term
	financial liabilities (6)	—	—	1,073	1,073	—	—	11	1,084

		At December 31, 2019
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	533	102	—	635	(463)	(70)	—	102
	Advances to/receivables
	from equity companies (2)(7)	—	1,941	6,729	8,670	—	—	(128)	8,542
	Other long-term
	financial assets (3)	1,145	—	974	2,119	—	—	44	2,163
Liabilities
	Derivative liabilities (4)	568	70	—	638	(463)	(105)	—	70
	Long-term debt (5)	25,652	134	3	25,789	—	—	(1,117)	24,672
	Long-term obligations
	to equity companies (7)	—	—	4,245	4,245	—	—	(257)	3,988
	Other long-term
	financial liabilities (6)	—	—	1,042	1,042	—	—	16	1,058

(1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles, net

(2) Included in the Balance Sheet line: Investments, advances and long-term receivables

(3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles, net

(4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations

(5) Excluding finance lease obligations

(6) Included in the Balance Sheet line: Other long-term obligations

(7) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.

Long-Term Debt [Abstract]

Schedule of Debt Instruments

The increase in the estimated fair value and book value of long-term debt reflects the Corporation's issuance of new debt securities during 2020. The carrying value of these debt securities as of September 30, 2020, is below:

Issuance Date	Description of Notes	Carrying Value
(millions of dollars)
March 2020
	2.992% Notes due 2025	1,500
	3.294% Notes due 2027	1,000
	3.482% Notes due 2030	2,000
	4.227% Notes due 2040	1,250
	4.327% Notes due 2050	2,750
April 2020
	1.571% Notes due 2023	2,750
	2.992% Notes due 2025 (1)	1,310
	2.610% Notes due 2030	2,000
	4.227% Notes due 2040 (1)	842
	3.452% Notes due 2051	2,750
June 2020 (2)
	0.142% Notes due 2024	1,756
	0.524% Notes due 2028	1,171
	0.835% Notes due 2032	1,171
	1.408% Notes due 2039	1,171
	Total	23,421

(1) Includes premiums of $152 million.

(2) Euro-denominated.

Schedule of Notional Amounts of Outstanding Derivative Positions

The net notional long/(short) position of derivative instruments at September 30, 2020, and December 31, 2019, was as follows:

	September 30,	December 31,
	2020	2019
	(millions)
Crude oil (barrels)	50	57
Petroleum products (barrels)	(50)	(38)
Natural Gas (MMBTUs)	(438)	(165)

Derivative Instruments - Before-Tax Realized and Unrealized Gains / (Losses)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are included in the following lines on a before-tax basis:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Sales and other operating revenue	(297)	144	688	(98)
Crude oil and product purchases	134	60	(396)	75
Total	(163)	204	292	(23)