In the normal course of our business, we are exposed to commodity risks related to changes in the prices of crude oil and natural gas as well as changes in interest rates and foreign currency values. In the disclosures that follow, corporate financial risk management activities refer to the mitigation of these risks through hedging activities. We maintain a control environment for all of our financial risk management activities under the direction of our Chief Risk Officer. Our Treasury department is responsible for administering foreign exchange rate and interest rate hedging programs using similar controls and processes, where applicable. Hedging strategies are reviewed annually by the Audit Committee of the Board of Directors.

Corporate Financial Risk Management Activities: Financial risk management activities include transactions designed to reduce risk in the selling prices of crude oil or natural gas we produce or by reducing our exposure to foreign currency or interest rate movements. Generally, futures, swaps or option strategies may be used to fix the forward selling price of a portion of our crude oil or natural gas production. Forward contracts may also be used to purchase certain currencies in which we conduct business with the intent of reducing exposure to foreign currency fluctuations. At December 31, 2019, these forward contracts relate to the British Pound and the Danish Krone. Interest rate swaps may be used to convert interest payments on certain long-term debt from fixed to floating rates.

The notional amounts of outstanding financial risk management derivative contracts were as follows:

	December 31, 2019		December 31, 2018
	(In millions)
Commodity - crude oil (millions of barrels)		54.9		34.7
Foreign exchange	$	90	$	16
Interest rate swaps	$	100	$	100

For calendar year 2020 we have West Texas Intermediate (WTI) put options with an average monthly floor price of $55 per barrel for 130,000 bopd, and Brent put options with an average monthly floor price of $60 per barrel for 20,000 bopd.

The table below reflects the gross and net fair values of risk management derivative instruments and their respective financial statement caption in the Consolidated Balance Sheet:

	Assets		Liabilities
	(In millions)
December 31, 2019
Derivative Contracts Designated as Hedging Instruments:
Commodity - Other current assets	$	125	$	—
Interest rate - Other assets (noncurrent)		1		—
Total derivative contracts designated as hedging instruments		126		—
Derivative Contracts Not Designated as Hedging Instruments:
Foreign exchange		—		(1	)
Total derivative contracts not designated as hedging instruments		—		(1	)
Gross fair value of derivative contracts		126		(1	)
Master netting arrangements		—		—
Net Fair Value of Derivative Contracts	$	126	$	(1	)

December 31, 2018
Derivative Contracts Designated as Hedging Instruments:
Commodity - Other current assets	$	484	$	—
Interest rate - Other liabilities and deferred credits (noncurrent)		—		(2	)
Total derivative contracts designated as hedging instruments		484		(2	)
Gross fair value of derivative contracts		484		(2	)
Master netting arrangements		—		—
Net Fair Value of Derivative Contracts	$	484	$	(2	)

Impact on statement of consolidated income from derivative contracts designated as hedging instruments:

Crude oil derivatives: In 2019, crude oil price hedging contracts increased Sales and other operating revenues by $1 million (2018: decrease of $161 million; 2017: decrease of $34 million). At December 31, 2019, pre-tax deferred losses in Accumulated other comprehensive income (loss) related to outstanding crude oil price hedging contracts were $98 million, of which all will be reclassified into earnings during the next 12 months as the hedged crude oil sales are recognized in earnings.

Interest rate swaps designated as fair value hedges: At December 31, 2019, we had interest rate swaps with gross notional amounts of $100 million (2018: $100 million), which were designated as fair value hedges and relate to debt where we have converted interest payments on certain long-term debt from fixed to floating rates. Changes in the fair value of interest rate swaps and the hedged fixed‑rate debt are recorded in Interest expense in the Statement of Consolidated Income. In 2019, the change in fair value of interest rate swaps was a decrease in the derivative liability of $3 million (2018: $1 million increase in liability; 2017: $4 million increase in liability) with a corresponding adjustment in the carrying value of the hedged fixed‑rate debt. During 2018, we terminated interest rate swaps with a gross notional amount of $350 million and paid $3 million.

Impact on statement of consolidated income from derivative contracts not designated as hedging instruments:

Crude oil collars: In 2018, noncash adjustments to de-designated crude oil price hedging contracts decreased Sales and other operating revenues by $22 million (2017: decrease of $25 million).

Foreign exchange: Total foreign exchange gains and losses were a gain of $3 million in 2019 (2018: loss of $5 million; 2017: gain of $15 million) and are reported in Other, net in Revenues and non-operating income in the Statement of Consolidated Income. A component of foreign exchange gains or losses is the result of foreign exchange derivative contracts that are not designated as hedges, which amounted to a loss of $2 million in 2019 (2018: loss of $2 million; 2017: gain of $3 million).

In 2017, after‑tax foreign currency translation adjustments included in the Statement of Consolidated Comprehensive Income amounted to gains of $144 million. In addition, $900 million of cumulative currency translation losses were recognized in earnings as a result of the sale of our assets in Norway. See Note 3, Dispositions.

Credit Risk: We are exposed to credit risks that may at times be concentrated with certain counterparties, groups of counterparties or customers. Accounts receivable are generated from a diverse domestic and international customer base. At December 31, 2019, our Accounts receivable were concentrated with the following counterparty industry segments: Integrated companies — 41%, Independent E&P companies — 26%, Refining and marketing companies — 14%, National oil companies — 8%, Storage and transportation companies — 5%, and Others — 6%. We reduce risk related to certain counterparties, where applicable, by using master netting arrangements and requiring collateral, generally cash or letters of credit.

At December 31, 2019, we had outstanding letters of credit totaling $272 million (2018: $284 million).

Fair Value Measurement: At December 31, 2019, our total long-term debt, which was substantially comprised of fixed rate debt instruments, had a carrying value of $7,142 million and a fair value of $8,242 million, based on Level 2 inputs in the fair value measurement hierarchy. We also have short-term financial instruments, primarily cash equivalents, accounts receivable and accounts payable, for which the carrying value approximated fair value at December 31, 2019 and December 31, 2018.