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ASSET RETIREMENT OBLIGATION
 12 Months Ended
Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]  
ASSET RETIREMENT OBLIGATION ASSET RETIREMENT OBLIGATION
The following table describes changes to the Company’s asset retirement obligation (ARO) liability:
For the Year Ended December 31,
20212020
 (In millions)
Asset retirement obligation at beginning of the year$1,944 $1,858 
Liabilities incurred3 10 
Liabilities divested(44)(26)
Liabilities settled(32)(30)
Accretion expense113 109 
Revisions in estimated liabilities146 23 
Asset retirement obligation at end of the year2,130 1,944 
Less current portion(41)(56)
Asset retirement obligation, long-term$2,089 $1,888 
The ARO liability reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with the Company’s oil and gas properties and other long-lived assets. The Company utilizes current retirement costs to estimate the expected cash outflows for retirement obligations. The Company estimates the ultimate productive life of the properties, a risk-adjusted discount rate, and an inflation factor in order to determine the current present value of this obligation. To the extent future revisions to these assumptions impact the present value of the existing ARO liability, a corresponding adjustment is made to the oil and gas property or other long-lived asset balance.
During 2021 and 2020, the Company recorded $3 million and $10 million, respectively, in abandonment liabilities resulting from the Company’s exploration and development capital program. Liabilities settled primarily relate to individual properties, platforms, and facilities plugged and abandoned during the period. During 2021, approximately $146 million net abandonment costs were revised upward to reflect changes in estimates of higher current activity costs and long-term inflation assumptions, primarily in the U.S. During 2020, approximately $23 million net abandonment costs were revised upward to reflect changes in estimates of timing and costs, primarily in the North Sea.