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Property, Plant And Equipment And Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2024
Property, Plant And Equipment And Asset Retirement Obligations [Abstract]  
Property, Plant And Equipment And Asset Retirement Obligations Property, Plant and Equipment and Asset Retirement Obligations
Property, Plant and Equipment
(millions of dollars)
December 31, 2024December 31, 2023
CostNetCostNet
 
Upstream423,038 226,021 359,031 148,245 
Energy Products58,259 28,349 57,400 27,284 
Chemical Products39,224 19,973 38,801 20,329 
Specialty Products9,559 4,229 9,385 4,378 
Other23,823 15,746 22,768 14,704 
Total553,903 294,318 487,385 214,940 
 
In 2024, the Corporation identified situations where events or changes in circumstances indicated that the carrying value of certain long-lived assets may not be recoverable and conducted impairment assessments. Before-tax impairment charges recognized during 2024 are immaterial.
In 2023, the Corporation recognized before-tax impairment charges of $3.3 billion, in large part due to impairing the idled Upstream Santa Ynez Unit assets and associated facilities in California, reflecting the continuing challenges in the state regulatory environment that impeded progress in restoring operations. Other before-tax impairment charges recognized during 2023 included $0.3 billion in Upstream, $0.3 billion in Chemical Products, and $0.1 billion in Specialty Products.
In 2022, the Corporation recognized before-tax impairment charges of $4.5 billion as a result of the Corporation's plans to discontinue operations on the Sakhalin-1 project and develop steps to exit the venture in response to Russia's military action in Ukraine (Refer to Note 2 for additional information). Other before-tax impairment charges recognized during 2022 included $1.5 billion in Upstream and $0.4 billion in Energy Products.
Impairment charges are primarily recognized in the lines “Depreciation and depletion” and “Exploration expenses, including dry holes” on the Consolidated Statement of Income. Accumulated depreciation and depletion totaled $259,585 million at the end of 2024 and $272,445 million at the end of 2023.
Asset Retirement Obligations
The Corporation incurs retirement obligations for certain assets. The fair values of these obligations are recorded as liabilities on a discounted basis, which is typically at the time the assets are installed. In the estimation of fair value, the Corporation uses assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements, discount rates, and inflation rates. Asset retirement obligations incurred in the current period were level 3 fair value measurements. The costs associated with these liabilities are capitalized as part of the related assets and depreciated as the reserves are produced. Over time, the liabilities are accreted for the change in their present value.
Asset retirement obligations for facilities in the Product Solutions business generally become firm at the time a decision is made to permanently shut down and dismantle the facilities. These obligations may include the costs of asset disposal and additional soil remediation. However, these sites generally have indeterminate lives based on plans for continued operations and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations.
The following table summarizes the activity in the liability for asset retirement obligations:
(millions of dollars)202420232022
 
Balance at January 112,989 10,491 10,630 
Accretion expense and other provisions709 734 744 
Reduction due to property sales(1,445)(288)(328)
Payments made(1,191)(693)(518)
Liabilities incurred533 831 119 
Foreign currency translation(447)124 (330)
Revisions884 1,790 174 
Balance at December 3112,032 12,989 10,491 
 
The long-term Asset Retirement Obligations were $10,886 million and $11,942 million at December 31, 2024 and 2023, respectively, and are included in “Other long-term obligations” on the Consolidated Balance Sheet. Estimated cash payments in 2025 and 2026 are $1,146 million and $968 million, respectively.